Dollar General Second Quarter Earnings Sneak Peek

The Cheat Sheet

Dollar General will unveil its latest earnings on Tuesday, August 30, 2011. Dollar General Corporation is a discount retailer in the United States and operates convenient-sized stores to deliver everyday low prices on products that families use every day.

Dollar General Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 48 cents during the last month. For the year, analysts are projecting profit of $2.24 per share, a rise of 21.1% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of 48 cents per share versus a mean estimate of profit of 50 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.54 billion in revenue this quarter, a rise of 10.3% from the year ago quarter. Analysts are forecasting total revenue of $14.61 billion for the year, a rise of 12% from last year’s revenue of $13.04 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 15.4% while it rose more than twofold in the fourth quarter of the last fiscal year and 69.4% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.9% to $3.45 billion in first quarter. The figure rose 9.4% in the fourth quarter of the last fiscal year from the year earlier, climbed 10.1% in the third quarter of the last fiscal year from the year-ago quarter and 10.8% in the second quarter of the last fiscal year.

Competitors to Watch: Family Dollar Stores, Inc. , 99 Cents Only Stores , Dollar Tree, Inc. , Wal-Mart Stores, Inc. , Target Corporation , Costco Wholesale Corp. , Big Lots, Inc. , Fred’s, Inc. , Walgreens , CVS and Gordmans Stores, Inc. .

Stock Price Performance: During May 31, 2011 to August 24, 2011, the stock price had fallen $2.23 (-6.4%) from $35.07 to $32.84. The stock price saw one of its best stretches over the last year between November 15, 2010 and November 23, 2010 when shares rose for seven-straight days, rising 15.2% (+$4.40) over that span. It saw one of its worst periods between July 26, 2011 and August 2, 2011 when shares fell for six-straight days, falling 6.1% (-$1.98) over that span. Shares are up $2.17 (+7.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

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