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Factors Likely to Impact Dollar General (DG) in Q4 Earnings
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Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results on Mar 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,696 million, indicating an increase of 3.3% from the prior-year quarter’s level.
The bottom line of this discount retailer is expected to decrease from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings per share in the fiscal fourth quarter has been stable at $2.56 over the past 30 days, suggesting a decline of 2.3% from the year-ago period’s reported number.
DG has a trailing four-quarter earnings surprise of 8.8%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 3%.
Key Factors to Note
Dollar General’s everyday low-price model is likely to have drawn customers, who have been seeking both value and convenience amid the pandemic. DG’s efficient pricing strategy, private label offerings and effective inventory management bode well.
To boost traffic, Dollar General continues focusing on both consumables and non-consumables categories. DG has been offering “better-for-you” products at affordable prices for a while. It is steadily expanding cooler facilities to enhance the sale of perishable items as well.
Initiatives, such as DG Pickup and DG GO! mobile checkout, which aim at providing convenient and contactless shopping experience, are also noteworthy. Dollar General has partnered with DoorDash, the last-mile logistics platform, to offer same-day delivery of household essential. Cumulatively, these are likely to have favorably impacted the top-line performance.
However, margins remain an area to watch out. Any deleverage in distribution and transportation costs, higher payroll expenses and a rise in expenses associated with maintaining safety at work cannot be ruled out. On its last earnings call, management had cautioned about the persisting gross margin pressure in the final quarter due to a higher LIFO provision as a result of escalated cost of goods, a less favorable sales mix than the prior-year quarter’s level and an increase in the markdown rates as Dollar General continues to cycle the abnormally low levels in fiscal 2020.
Dollar General Corporation Price, Consensus and EPS Surprise
Our proven model does not conclusively predict a beat for Dollar General this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General has an Earnings ESP of +0.68% but a Zacks Rank #4 (Sell)
3 Stocks With a Favorable Combination
Here are three companies that you may want to consider as our model shows that these have the right combination of elements to beat on earnings this time around.
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #2. FAST is expected to register bottom-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings of 44 cents a share suggests growth of 18.9% from the year-ago quarter’s reported figure.
Fastenal’s top line is expected to rise from the year-ago quarter’s actuals. The consensus mark for revenues is pegged at $1.67 billion, indicating an improvement of 17.9% from the figure reported in the year-ago period. FAST has a trailing four-quarter earnings surprise of 3.3%, on average.
Boot Barn Holdings (BOOT - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank of 3. BOOT is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.30 suggests an increase of 73.3% from the year-ago period’s reported number.
Boot Barn Holdings’ top line is expected to increase from the prior-year quarter’s reading. The Zacks Consensus Estimate for quarterly revenues is pegged at $345.2 million, suggesting an increase of 33.3% from the prior-year quarter’s finals. BOOT has a long-term earnings growth rate of 20%.
Costco (COST - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #3. COST is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.97 per share suggests an improvement of 8% from the year-ago quarter’s reported figure.
Costco’s top line is also expected to rise from the year-earlier quarter’s reported figure. The consensus mark for revenues stands at $49.61 billion, indicating an increase of 9.6% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.
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Factors Likely to Impact Dollar General (DG) in Q4 Earnings
Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results on Mar 17, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,696 million, indicating an increase of 3.3% from the prior-year quarter’s level.
The bottom line of this discount retailer is expected to decrease from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for earnings per share in the fiscal fourth quarter has been stable at $2.56 over the past 30 days, suggesting a decline of 2.3% from the year-ago period’s reported number.
DG has a trailing four-quarter earnings surprise of 8.8%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 3%.
Key Factors to Note
Dollar General’s everyday low-price model is likely to have drawn customers, who have been seeking both value and convenience amid the pandemic. DG’s efficient pricing strategy, private label offerings and effective inventory management bode well.
To boost traffic, Dollar General continues focusing on both consumables and non-consumables categories. DG has been offering “better-for-you” products at affordable prices for a while. It is steadily expanding cooler facilities to enhance the sale of perishable items as well.
Initiatives, such as DG Pickup and DG GO! mobile checkout, which aim at providing convenient and contactless shopping experience, are also noteworthy. Dollar General has partnered with DoorDash, the last-mile logistics platform, to offer same-day delivery of household essential. Cumulatively, these are likely to have favorably impacted the top-line performance.
However, margins remain an area to watch out. Any deleverage in distribution and transportation costs, higher payroll expenses and a rise in expenses associated with maintaining safety at work cannot be ruled out. On its last earnings call, management had cautioned about the persisting gross margin pressure in the final quarter due to a higher LIFO provision as a result of escalated cost of goods, a less favorable sales mix than the prior-year quarter’s level and an increase in the markdown rates as Dollar General continues to cycle the abnormally low levels in fiscal 2020.
Dollar General Corporation Price, Consensus and EPS Surprise
Dollar General Corporation price-consensus-eps-surprise-chart | Dollar General Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict a beat for Dollar General this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General has an Earnings ESP of +0.68% but a Zacks Rank #4 (Sell)
3 Stocks With a Favorable Combination
Here are three companies that you may want to consider as our model shows that these have the right combination of elements to beat on earnings this time around.
Fastenal Company (FAST - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank #2. FAST is expected to register bottom-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings of 44 cents a share suggests growth of 18.9% from the year-ago quarter’s reported figure.
Fastenal’s top line is expected to rise from the year-ago quarter’s actuals. The consensus mark for revenues is pegged at $1.67 billion, indicating an improvement of 17.9% from the figure reported in the year-ago period. FAST has a trailing four-quarter earnings surprise of 3.3%, on average.
Boot Barn Holdings (BOOT - Free Report) currently has an Earnings ESP of +0.25% and a Zacks Rank of 3. BOOT is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.30 suggests an increase of 73.3% from the year-ago period’s reported number.
Boot Barn Holdings’ top line is expected to increase from the prior-year quarter’s reading. The Zacks Consensus Estimate for quarterly revenues is pegged at $345.2 million, suggesting an increase of 33.3% from the prior-year quarter’s finals. BOOT has a long-term earnings growth rate of 20%.
Costco (COST - Free Report) currently has an Earnings ESP of +0.35% and a Zacks Rank #3. COST is expected to register bottom-line growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.97 per share suggests an improvement of 8% from the year-ago quarter’s reported figure.
Costco’s top line is also expected to rise from the year-earlier quarter’s reported figure. The consensus mark for revenues stands at $49.61 billion, indicating an increase of 9.6% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.