Discount retailer Dollar General (NYSE:DG) will be announcing earnings results tomorrow before market hours. Here’s what to expect.
Dollar General met analysts’ revenue expectations last quarter, reporting revenues of $9.91 billion, up 6.1% year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year.
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 5.9% year on year to $10.37 billion, improving from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.79 per share.
The majority of analysts covering the company have 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 three times 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 11.9%, beating analysts’ expectations by 3.2%, and Grocery Outlet reported revenues up 11.7%, topping estimates by 2.4%. Sprouts traded up 13.2% following the results while Grocery Outlet was also up 6%.
Read our full analysis of Sprouts’s results here and Grocery Outlet’s results here.
Investors in the non-discretionary retail segment have had steady hands going into earnings, with share prices flat over the last month. Dollar General is up 4.3% during the same time and is heading into earnings with an average analyst price target of $144.1 (compared to the current share price of $125.12).
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