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Dollar General (DG) Lined Up for Q1 Earnings: Factors to Note
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Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2022 results on May 26, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,709 million, indicating an improvement of 3.7% 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 first-quarter earnings per share has decreased by a penny to $2.32 over the past seven days, suggesting a decline of 17.7% from the year-ago period’s reported number.
DG has a trailing four-quarter earnings surprise of 10%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 0.4%.
Key Factors to Note
Dollar General’s better pricing, private-label offerings and effective inventory management are likely to have contributed to the to-be-reported quarter’s top-line performance. The company’s operational capabilities, coupled with its real estate growth strategy, position it well to gain market share by targeting low-to-middle income group consumers. To boost traffic, Dollar General has been focusing on both consumables and non-consumables categories.
To make shopping convenient and contactless, the company has partnered with DoorDash, the last-mile logistics platform, to offer same-day delivery of essential household items. The company has been steadily expanding its self-checkout facility. Cumulatively, these are likely to have favorably impacted the top-line performance.
However, margins remain an area to watch out for. On its last earnings call, Dollar General highlighted the first quarter to be a challenging one due to increased cost pressures, ongoing supply chain bottlenecks, and tough year-over-year sales and gross margin comparison, as the prior-year quarter benefited from stimulus payments. For the 13-week quarter ending Apr 29, 2022, Dollar General projected a 1-2% decline in same-store sales. It guided earnings in the band of $2.25-$2.35 per share, which suggests a decline from $2.82 reported in the year-ago period.
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 -2.75% and a Zacks Rank #3.
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.
Kroger (KR - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $43.22 billion, indicating an increase of 4.7% from the year-ago quarter. KR has a trailing four-quarter earnings surprise of 22.1%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.49 suggests an increase of 33% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.44 billion, which suggests an increase of 44.7% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.
Macy's (M - Free Report) currently has an Earnings ESP of +3.12% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 82 cents suggests an increase of 110.3% from the year-ago reported number.
Macy's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.35 billion, which suggests an improvement of 13.6% from the prior-year quarter. Macy’s has a trailing four-quarter earnings surprise of 238.9%, on average.
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Dollar General (DG) Lined Up for Q1 Earnings: Factors to Note
Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2022 results on May 26, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $8,709 million, indicating an improvement of 3.7% 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 first-quarter earnings per share has decreased by a penny to $2.32 over the past seven days, suggesting a decline of 17.7% from the year-ago period’s reported number.
DG has a trailing four-quarter earnings surprise of 10%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 0.4%.
Key Factors to Note
Dollar General’s better pricing, private-label offerings and effective inventory management are likely to have contributed to the to-be-reported quarter’s top-line performance. The company’s operational capabilities, coupled with its real estate growth strategy, position it well to gain market share by targeting low-to-middle income group consumers. To boost traffic, Dollar General has been focusing on both consumables and non-consumables categories.
To make shopping convenient and contactless, the company has partnered with DoorDash, the last-mile logistics platform, to offer same-day delivery of essential household items. The company has been steadily expanding its self-checkout facility. Cumulatively, these are likely to have favorably impacted the top-line performance.
However, margins remain an area to watch out for. On its last earnings call, Dollar General highlighted the first quarter to be a challenging one due to increased cost pressures, ongoing supply chain bottlenecks, and tough year-over-year sales and gross margin comparison, as the prior-year quarter benefited from stimulus payments. For the 13-week quarter ending Apr 29, 2022, Dollar General projected a 1-2% decline in same-store sales. It guided earnings in the band of $2.25-$2.35 per share, which suggests a decline from $2.82 reported in the year-ago period.
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 -2.75% and a Zacks Rank #3.
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.
Kroger (KR - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.27 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Kroger’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $43.22 billion, indicating an increase of 4.7% from the year-ago quarter. KR has a trailing four-quarter earnings surprise of 22.1%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.49 suggests an increase of 33% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.44 billion, which suggests an increase of 44.7% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.
Macy's (M - Free Report) currently has an Earnings ESP of +3.12% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 82 cents suggests an increase of 110.3% from the year-ago reported number.
Macy's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.35 billion, which suggests an improvement of 13.6% from the prior-year quarter. Macy’s has a trailing four-quarter earnings surprise of 238.9%, on average.
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