Dollar General (NYSE: DG) has confirmed that the company will release its earnings on Thursday, December 2, 2021, before markets open.
What to look for
The company runs merchandise stores with offerings including snacks, food supplies, basic apparel housewares, and seasonal items. The company offers brands such as Energizer, Clorox, Procter & Gamble, Coca-Cola, Nestle, Mars, Unilever, and many more. Ahead of the holiday quarter, sales are expected to grow as people make purchases for the holidays.
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be $2.02 per share relative to EPS of $2.31 per share a year ago, indicating a negative YoY growth of 12.6%. For the full year, the company is anticipating earnings of $10.21 per share with EPS estimates of between $9,85 per share and $10.42. for the upcoming fiscal year, the company expects EPS to range between $9.25 and $11.73.
Revenue: In the past quarter, the company reported revenue of $8.65 billion, topping analysts estimates of $8.59 billion. Dollar General's net margin was 97.52%, and revenue was 4% down YoY.
Stock movement: Since the last earnings release, Dollar General stock has lost 4.3%. Dollar General shares have been UP 26% times out of the past 46 quarters after the earnings release. So, the historical price reaction suggests a 58% probability of the share price going UP once Dollar General releases its earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 4%.
What analysts are saying
R5 Capital analyst Scott Mushkin lowered his price target on Dollar General from $294 to $218 and downgraded the stock from "Buy" to "Sell" based on considerable out of stocks the analyst observed during in-market store checks. Following the research on out-of-stock and the labor shortages impact on the store experience, he is slashing for the second half of FY2021 and into FY2022. In addition, Mushkin slashed store openings estimate for the rest of the year and next year as he anticipates the pace to slow in the present environment. Interestingly the company has more than 17,000 stores which is possible that Dollar General is doing better, which "could lead to results being better than we are expecting," said Mushkin.
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