Retail

What to Expect From Dollar General Earnings

Dollar General Corp. (NYSE: DG) will report its fiscal fourth-quarter financial results Thursday before the markets open. Thomson Reuters has consensus estimates of $1.17 in earnings per share (EPS) on $4.95 billion in revenue. The same quarter from the previous year had $1.01 in EPS on $4.49 billion in revenue.

In the wake of Dollar Tree Inc. (NASDAQ: DLTR) winning out in the war for Family Dollar Stores Inc. (NYSE: FDO), Dollar General has set a course to press ahead with its business model, but more will be seen in terms of the direction of the company Thursday morning in its fourth-quarter earnings.

Dollar Tree had previously reported its fourth-quarter financial results just a week prior. The company had $1.00 in earnings per share (EPS) on $2.48 billion in revenue, versus consensus estimates of $1.15 in EPS and $2.47 billion in revenue.

A couple of analysts weighed in on Dollar General within the month prior to earnings being released. J.P. Morgan reiterated an Overweight rating with a price target of $85, which implies an upside of 19% from Wednesday’s close. Piper Jaffray also jumped in on Dollar General with a Buy rating and the firm raised its price target to $85 from $73.

The 50-day moving average (MA) was tested for about a month when discussions of the merger talks had reached their pinnacle from mid-January to mid-February. Dollar General shares eventually would cross over the MA when the merger deal was settled. The 50-day MA currently reads at $69.54. The 200-day MA is immaterial at $63.68.

Shares of Dollar General closed Wednesday up 0.6% at $71.45. The stock has a consensus analyst price target of $77.74 and a 52-week trading range of $53.00 to $73.53.

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