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How Dollar General (DG) Looks Just Ahead of Q1 Earnings
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Dollar General Corporation (DG - Free Report) is scheduled to report first-quarter fiscal 2020 results on May 28 before the market opens. We note that in the trailing four quarters, the company’s bottom line has outperformed the Zacks Consensus Estimate by 5.9%, on average. In the last reported quarter, the company delivered a positive earnings surprise of 4%.
The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $1.68, which indicates an improvement of 13.5% from the year-ago quarter. The consensus mark has increased by a penny in the past 7 days. The Zacks Consensus Estimate for revenues is pegged at $7,372 million, suggesting growth of 11.3% from the prior-year period.
Key Factors to Note
Dollar General’s better price management, private label offering, effective inventory management and operational initiatives have been driving sales. Additionally, the company is expanding its cooler facilities to enhance the sale of perishable items, and is rolling out DG digital coupon program. Analysts also pointed that the company is likely to have benefited from coronavirus-induced demand. These are likely to show on the company’s first-quarter performance.
Notably, management’s two transformational strategic initiatives, DG Fresh, designed to enable self-distribution of fresh and frozen products, and Fast Track, an in-store labor productivity and customer convenience initiative have been aiding the results. As part of its non-consumable initiative, the company has been focusing on categories namely home, domestics, housewares, party and occasion.
Backed by the aforementioned tailwinds, Dollar General boasts an impressive same-store sales trend. Rise in average transaction and customer traffic have been driving comps.
However, any deleverage SG&A expenses cannot be ignored. Moreover, increasing threat from online retailers on parameters such as same-day delivery and pricing is also a concern.
Dollar General Corporation Price, Consensus and EPS Surprise
Our proven model predicts an earnings beat for Dollar General this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dollar General has a Zacks Rank #3 and an Earnings ESP of +3.91%.
3 Other Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
The Kroger Co. (KR - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #2 at present.
Guess, Inc. (GES - Free Report) currently has an Earnings ESP of +12.75% and a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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How Dollar General (DG) Looks Just Ahead of Q1 Earnings
Dollar General Corporation (DG - Free Report) is scheduled to report first-quarter fiscal 2020 results on May 28 before the market opens. We note that in the trailing four quarters, the company’s bottom line has outperformed the Zacks Consensus Estimate by 5.9%, on average. In the last reported quarter, the company delivered a positive earnings surprise of 4%.
The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $1.68, which indicates an improvement of 13.5% from the year-ago quarter. The consensus mark has increased by a penny in the past 7 days. The Zacks Consensus Estimate for revenues is pegged at $7,372 million, suggesting growth of 11.3% from the prior-year period.
Key Factors to Note
Dollar General’s better price management, private label offering, effective inventory management and operational initiatives have been driving sales. Additionally, the company is expanding its cooler facilities to enhance the sale of perishable items, and is rolling out DG digital coupon program. Analysts also pointed that the company is likely to have benefited from coronavirus-induced demand. These are likely to show on the company’s first-quarter performance.
Notably, management’s two transformational strategic initiatives, DG Fresh, designed to enable self-distribution of fresh and frozen products, and Fast Track, an in-store labor productivity and customer convenience initiative have been aiding the results. As part of its non-consumable initiative, the company has been focusing on categories namely home, domestics, housewares, party and occasion.
Backed by the aforementioned tailwinds, Dollar General boasts an impressive same-store sales trend. Rise in average transaction and customer traffic have been driving comps.
However, any deleverage SG&A expenses cannot be ignored. Moreover, increasing threat from online retailers on parameters such as same-day delivery and pricing is also a concern.
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 around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dollar General has a Zacks Rank #3 and an Earnings ESP of +3.91%.
3 Other Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big Lots, Inc. (BIG - Free Report) presently has an Earnings ESP of +19.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Kroger Co. (KR - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #2 at present.
Guess, Inc. (GES - Free Report) currently has an Earnings ESP of +12.75% and a Zacks Rank #2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>