Discount retailer Dollar General (NYSE: DG) will be announcing earnings results this Thursday before the bell. Here’s what you need to know.
Dollar General beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $10.44 billion, up 5.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Dollar General a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dollar General’s revenue to grow 4.5% year on year to $10.67 billion, in line with the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 8 upward revisions over the last 30 days (we track 21 analysts). Dollar General has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Dollar General’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.3%, and Grocery Outlet reported revenues up 4.5%, falling short of estimates by 0.6%. Sprouts traded down 4.1% following the results while Grocery Outlet was up 42.9%.
Read our full analysis of Sprouts’s results here and Grocery Outlet’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 2.4% on average over the last month. Dollar General is up 4.7% during the same time and is heading into earnings with an average analyst price target of $116.56 (compared to the current share price of $110.79).
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