Dollar General Earnings: What To Look For From DG

Kayode Omotosho /
2023/12/06 2:01 am EST

Discount retailer Dollar General (NYSE:DG) will be reporting earnings tomorrow before market open. Here's what to expect.

Last quarter Dollar General reported revenues of $9.80 billion, up 3.9% year on year, missing analyst expectations by 1.2%. It was a weak quarter for the company, with revenue and EPS fallin below analysts' expectations. Gross and operating margins declined year on year. Additionally, the company lowered full year guidance across the board, with a particularly jarring reduction in EPS outlook.

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 grow 1.9% year on year to $9.64 billion, slowing down from the 11.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.

Dollar General Total Revenue

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 Q3 earnings results, giving us a hint of what we can expect. Dollar Tree delivered top-line growth of 5.4% year on year, missing analyst estimates by 1.4% and Walmart reported revenues up 5.2% year on year, exceeding estimates by 1.4%. Dollar Tree traded down 2.9% on the results, and Walmart was down 5.9%.

Read our full analysis of Dollar Tree's results here and Walmart's results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with the stocks up on average 9.5% over the last month. Dollar General is up 10.4% during the same time, and is heading into the earnings with analyst price target of $132.9, compared to share price of $133.5.

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The author has no position in any of the stocks mentioned.