Earnings Preview: Dollar General Corp

| About: Dollar General (DG)

Dollar General Corporation (NYSE:DG) operates as a discount retailer primarily in the southern, southwestern, midwestern, and eastern United States. The company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The company's merchandise includes national brands from manufacturers, as well as private brand selections with prices at substantial discounts to national brands.

Dollar General is scheduled to report its first-quarter earnings results on June 04, 2012, after market close.

Technical Overview

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Dollar General has a market cap of $16.26 billion and it is currently trading around $48.06 with a 52-week range of $29.84 to $48.76. The stock has 16.82% price performance for the year 2012. The following table provides the key financial ratios for Dollar General:

Key Ratio Value
Current Ratio 1.51
PEG 1.35
P/E 21.65
Forward P/E 14.83
Profit Margin 5.18%
Return On Assets (ROA) 7.97%
Return On Equity (ROE) 17.58%

Recent Analyst Ratings

Here's a list of recent changes to analyst ratings:

  • On May 26, 2012, Columbine Capital Services downgraded Dollar General from FAVORABLE to NEUTRAL.
  • On May 24, 2012, Nomura Securities maintains a BUY on Dollar General and set the price target of $54.00.
  • On May 8, 2012, Thomas White/Global Capital upgraded Dollar General from MOST UNFAVORABLE to MOST FAVORABLE.
  • On April 30, 2012, Raymond James upgraded Dollar General from OUTPERFORM to STRONG BUY.
  • On April 30, 2012, Thomson Reuters/Verus downgraded Dollar General from BUY to HOLD.
  • On April 30, 2012, Raymond James upgraded Dollar General to STRONG BUY from OUTPERFORM and set the price target as $57.
  • On April 9, 2012, Ned Davis Research upgraded Dollar General from NEUTRAL to BUY.
  • On April 2, 2012, Thomson Reuters/Verus upgraded Dollar General from HOLD to BUY.

Analyst Guidance and Earnings History

First-quarter revenue is expected to be $3.82 billion when compared with $3.45 billion for the same quarter last year. Earnings per share for the first quarter are expected to be 60 cents a share, up from 48 cents a share in the year-ago period.

The average price target from analyst for Dollar General is $52.26; the average rating is OVERWEIGHT

Out of the last four4 quarters, Dollar General has met or exceeded the EPS estimates three times. The following chart shows the Analyst estimates history and the actual EPS results :

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DG over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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Tagged: , Discount, Variety Stores, Earnings
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