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Dollar General (DG) Lined Up for Q4 Earnings: Factors to Note
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Dollar General Corporation (DG - Free Report) is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results on Mar 14 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $9.78 billion, which indicates a decline of 4.2% 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. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has risen by a penny to $1.74 over the past 30 days, the figure still suggests a decline of 41.2% from the year-ago quarter.
Dollar General has a trailing four-quarter negative earnings surprise of 2.4%, on average. In the last reported quarter, this Goodlettsville, TN-based player beat the Zacks Consensus Estimate by 5.9%.
Key Factors to Note
Dollar General faces a range of challenges that could have potentially hindered its sales performance in the fourth quarter. Economic uncertainties, including inflationary pressures and reductions in government benefits, are likely to have constrained consumer spending, particularly among Dollar General’s core demographic of lower-income consumers. This could result in diminished purchasing power and discretionary spending, potentially leading to softer sales.
The company expects challenges in sustaining consumer demand across various product categories, with non-essential items likely experiencing reduced sales as consumers prioritize essential purchases amid financial constraints. We expect fourth-quarter same-store sales to decline 0.8%.
Also, any increase in input costs and distribution expenses, as well as markdowns related to product recalls, might have put pressure on margins and the bottom line. We expect a contraction of 330 basis points in the operating margin.
Nonetheless, Dollar General’s value-creating initiatives, defensive product mix and real estate growth strategy provide a solid foundation for expanding market share. We also remain encouraged by the company’s host of initiatives, such as DG Fresh, Fast Track, digitization and private fleet.
Dollar General Corporation Price, Consensus and EPS Surprise
Our proven model predicts an earnings beat for Dollar General this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Dollar General has an Earnings ESP of +2.62% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Costco (COST - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.69 suggests a rise of 7.6% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.38 billion, which calls for an increase of 7% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $7.48 suggests a rise from $6.68 reported in the year-ago quarter.
Ulta Beauty’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.52 billion, which indicates a rise of 9% from the figure reported in the prior-year quarter. Ulta Beauty has a trailing four-quarter earnings surprise of 5.8%, on average.
Zumiez (ZUMZ - Free Report) currently has an Earnings ESP of +10.69% and a Zacks Rank of 3. The company is likely to register a bottom-line decline when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 26 cents suggests a drop from 59 cents reported in the year-ago quarter.
Zumiez’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $276.6 million, which indicates a decline of 1.2% from the figure reported in the prior-year quarter. ZUMZ has a trailing four-quarter earnings surprise of 18.5%, on average.
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Dollar General (DG) Lined Up for Q4 Earnings: Factors to Note
Dollar General Corporation (DG - Free Report) is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2023 results on Mar 14 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $9.78 billion, which indicates a decline of 4.2% 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. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has risen by a penny to $1.74 over the past 30 days, the figure still suggests a decline of 41.2% from the year-ago quarter.
Dollar General has a trailing four-quarter negative earnings surprise of 2.4%, on average. In the last reported quarter, this Goodlettsville, TN-based player beat the Zacks Consensus Estimate by 5.9%.
Key Factors to Note
Dollar General faces a range of challenges that could have potentially hindered its sales performance in the fourth quarter. Economic uncertainties, including inflationary pressures and reductions in government benefits, are likely to have constrained consumer spending, particularly among Dollar General’s core demographic of lower-income consumers. This could result in diminished purchasing power and discretionary spending, potentially leading to softer sales.
The company expects challenges in sustaining consumer demand across various product categories, with non-essential items likely experiencing reduced sales as consumers prioritize essential purchases amid financial constraints. We expect fourth-quarter same-store sales to decline 0.8%.
Also, any increase in input costs and distribution expenses, as well as markdowns related to product recalls, might have put pressure on margins and the bottom line. We expect a contraction of 330 basis points in the operating margin.
Nonetheless, Dollar General’s value-creating initiatives, defensive product mix and real estate growth strategy provide a solid foundation for expanding market share. We also remain encouraged by the company’s host of initiatives, such as DG Fresh, Fast Track, digitization and private fleet.
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 predicts an earnings beat for Dollar General this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Dollar General has an Earnings ESP of +2.62% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Costco (COST - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.69 suggests a rise of 7.6% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $57.38 billion, which calls for an increase of 7% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $7.48 suggests a rise from $6.68 reported in the year-ago quarter.
Ulta Beauty’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.52 billion, which indicates a rise of 9% from the figure reported in the prior-year quarter. Ulta Beauty has a trailing four-quarter earnings surprise of 5.8%, on average.
Zumiez (ZUMZ - Free Report) currently has an Earnings ESP of +10.69% and a Zacks Rank of 3. The company is likely to register a bottom-line decline when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 26 cents suggests a drop from 59 cents reported in the year-ago quarter.
Zumiez’s top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $276.6 million, which indicates a decline of 1.2% from the figure reported in the prior-year quarter. ZUMZ has a trailing four-quarter earnings surprise of 18.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.