Dollar General (DG) Q4 Earnings: What To Expect
Discount retailer Dollar General (NYSE:DG) will be reporting earnings tomorrow before the bell. Here's what investors should know.
Last quarter Dollar General reported revenues of $9.69 billion, up 2.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with revenue and EPS slightly exceeding expectations despite a same-store sales miss. On the other hand, its gross margin missed analysts' expectations. Guidance was also underwhelming, with the company lowering its sales growth and EPS outlooks, both of which came in below Consensus.
Is Dollar General buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Dollar General's revenue to decline 4.1% year on year to $9.78 billion, a deceleration on the 17.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.
Looking at Dollar General's peers in the non-discretionary retail segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Grocery Outlet delivered top-line growth of 6.3% year on year, beating analyst estimates by 0.9% and Target reported revenues up 1.7% year on year, exceeding estimates by 0.2%. Grocery Outlet traded up 6.8% on the results, and Target was up 5.4%.
Read our full analysis of Grocery Outlet's results here and Target's results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with the stocks up on average 5.3% over the last month. Dollar General is up 22.6% during the same time, and is heading into the earnings with analyst price target of $144.6, compared to share price of $161.5.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
