Discount retailer Dollar General (NYSE:DG) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.
Dollar General beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $10.18 billion, up 5% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations and a miss 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 4.1% year on year to $10.26 billion, a reversal from the 3.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.50 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 missed Wall Street’s revenue estimates four times over the last two years.
Looking at Dollar General’s peers in the non-discretionary retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 17.5%, beating analysts’ expectations by 1.7%, and Target reported a revenue decline of 3.1%, in line with consensus estimates. Sprouts traded down 15.6% following the results while Target was also down 3.5%.
Read our full analysis of Sprouts’s results here and Target’s results here.
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