Discount retailer Dollar General (NYSE: DG) will be reporting results this Thursday before market hours. Here’s what you need to know.
Dollar General beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $10.73 billion, up 5.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Dollar General a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Dollar General’s revenue to grow 4.2% year on year to $10.62 billion, in line with the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dollar General has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.5% on average.
Looking at Dollar General’s peers in the non-discretionary retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 1.1%, and BJ's reported revenues up 4.9%, in line with consensus estimates. Walmart traded up 4.6% following the results while BJ's was down 2.9%.
Read our full analysis of Walmart’s results here and BJ’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 5.2% on average over the last month. Dollar General is up 11.8% during the same time and is heading into earnings with an average analyst price target of $119.39 (compared to the current share price of $110.72).
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