Retail

What to Expect When Dollar General Reports on Tuesday

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Dollar General Corp. (NYSE: DG) is scheduled to release its fiscal third-quarter financial results before the markets open on Tuesday. The Thomson Reuters consensus estimates are  $1.26 in earnings per share (EPS) and $6.38 billion in revenue. The same period of last year reportedly had $0.93 in EPS and $5.9 billion in revenue.

During its latest quarter, same-store sales increased 3.7% from the second quarter of 2017, driven by increases in average transaction amount and customer traffic. Growth in same-store sales was driven by positive results in the consumables, seasonal and apparel categories, partially offset by sales declines in the home category.

Also at that time, the company issued guidance for the full year. Dollar General said that it expected to see EPS in the range of $5.95 to $6.15 and net sales growing 9.0% to 9.3%. Consensus estimates call for $6.11 in EPS and $25.56 billion in revenue for the full year.

Dollar General has outperformed the broad markets, with its stock up 26% in the past 52 weeks. In just 2018 alone, the stock is up 19%.

A few analysts weighed in on Dollar General ahead of the report:

  • Credit Suisse has a Hold rating and a $108 price target.
  • UBS Group has a Buy rating with a $120 price target.
  • Buckingham Research has a Buy rating with a $125 target.
  • Morgan Stanley has an Overweight rating and a $118 target.
  • Deutsche Bank has a Buy rating with a $125 target price.
  • Loop Capital has a Hold rating with a $105 target price.

Shares of Dollar General were last seen trading at $111.75, with a consensus analyst price target of $117.75 and a 52-week trading range of $85.54 to $118.45.

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