Stock Story -
Discount retailer Dollar General (NYSE:DG) will be reporting results tomorrow before the bell. Here's what you need to know.
Dollar General met analysts' revenue expectations last quarter, reporting revenues of $9.86 billion, down 3.4% year on year. It was a mixed quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates. On the other hand, Dollar General slightly topped analysts' same-store sales, revenue, and EPS expectations.
Is Dollar General a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Dollar General's revenue to grow 5.9% year on year to $9.90 billion, in line with the 6.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dollar General has missed Wall Street's revenue estimates three times over the last two years.
Looking at Dollar General's peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 8.7%, beating analysts' expectations by 1.9%, and Walmart (NYSE:WMT) reported revenues up 6%, topping estimates by 2.1%. Sprouts traded up 12% following the results while Walmart was also up 8.1%.
Read the full analysis of Sprouts's and Walmart's results on StockStory.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 9.3% on average over the last month. Dollar General is up 2.2% during the same time and is heading into earnings with an average analyst price target of $156.3 (compared to the current share price of $142.2).