Earnings Preview: 2 Retailers Report Quarterly Results Tuesday

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 |  Includes: BKS, DG
by: Robert Weinstein

Dollar General Corp. (NYSE:DG) is due to report earnings before the opening bell on Tuesday, August 30.

Overview

DG trades an average of 2.1 million shares per day.

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. The company was founded in 1939 and is based in Goodlettsville, Tennessee.

  • 52 Week High: $35.09
  • 52 Week Low: $26.64
  • Book Value: $12.35
  • Float Short: 8.09%

According to EDGAR Online, on average, 15 analysts are expecting the same in earnings as the last quarter of $0.48. Investors will be looking to see a number north of $0.48 per share, based on the earnings estimates. Analyst estimates range between $0.46 and $0.49 per share.

The current trailing twelve months (ttm) P/E ratio is 17.2 The forward P/E ratio is 14.6.

Looking at the price movement over the last month, the stock has fallen in price -0.31 %, with a one year change of 15.10%.

Comparing to the S&P 500 price changes, the price performances are 14.23% vs. the S&P 500 from a month ago, and year to date difference is 14.30% vs. the S&P 500 price change.

The company has rising revenue year-over-year of $13.04 billion for 2011 vs. $11.80 billion for 2010. The bottom line has rising earnings year-over-year of $627.86 million for 2011 vs. $339.44 million for 2010. The company's earnings before income and taxes are rising with an EBIT year-over-year of $1.27 billion for 2011 vs. $953.26 million for 2010.

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Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Apr-11 $ 3.42 B $ 3.45 B $ 35.26 M 1.03%
Jan-11 $ 3.52 B $ 3.49 B $ -37.07 M -1.05%
Oct-10 $ 3.23 B $ 3.22 B $ -6.82 M -0.21%
Jul-10 $ 3.22 B $ 3.21 B $ -7.47 M -0.23%
Apr-10 $ 3.03 B $ 3.11 B $ 86.11 M 2.85%
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M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)

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Reported earnings per share compared to the mean estimate. Differences are rounded.

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Barnes & Noble, Inc. (NYSE:BKS) is due to report earnings before the opening bell on Tuesday, August 30.

Overview

BKS trades an average of 1.2 million shares per day.

Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company was founded in 1986 and is based in New York, New York. I gave a review of Barnes & Noble back in January, you can read the article here.

Investors have had a tough time with this one. It appeared for a while that my estimations of a buyout price was too low. When Liberty media offered to buy the company for much larger than I calculated, they had me scratching my head wondering what they could see of value that I did not. It appears the lawyers that lined up to sue the company over the buyout will have to find another victim, or at least come up with another legal theory.

  • 52 Week High: $21.06
  • 52 Week Low: $8.45
  • Book Value: $14.37
  • Float Short: 22.21%

Analysts are expecting an improvement of $0.10 in earnings per share compared to last quarter's results of $-1.04. A beat of $-0.94 per share, will top the estimated mean earnings. Analyst estimates range between $-1.12 and $-0.82 per share.

Looking at the price movement over the last month, the stock has fallen in price -37.68 %, with a one year change of -26.47%.

Comparing to the S&P 500 price changes, the price performances are -28.59% vs. the S&P 500 from a month ago, and year to date difference is -15.66% vs. the S&P 500 price change.

Revenue year-over-year has increased to $7.00 billion for 2011 vs. $5.81 billion for 2010. The bottom line has falling earnings year-over-year of $-73.92 million for 2011 vs. $36.68 million for 2010. The company's earnings before income and taxes are falling with an EBIT year-over-year of $-65.26 million for 2011 vs. $73.25 million for 2010.

Gross revenue is growing at an annual rate of 20.48%.

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Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Apr-11 $ 1.39 B $ 1.37 B $ -23.36 M -1.68%
Jan-11 $ 2.38 B $ 2.33 B $ -59.64 M -2.5%
Oct-10 $ 1.98 B $ 1.91 B $ -73.91 M -3.73%
Jul-10 $ 1.41 B $ 1.40 B $ -8.43 M -0.6%
May-10 $ 1.28 B $ 1.32 B $ 44.12 M 3.46%
Click to enlarge
M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)

Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

Click to enlarge

Click to enlarge

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner.

I use Seeking Alpha, Edgar Online, Google Finance, MSN Money, CNBC, Zacks and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.