Yahoo Finance Dollar General (DG) to Report Q4 Earnings: What to Expect?
Dollar General Corporation DG is likely to register an increase in the top line when it reports fourth-quarter fiscal 2022 results on Mar 16, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $10.25 billion, indicating an improvement of 18.4% from the prior-year quarter’s level.
The bottom line of this discount retailer is also expected to have increased from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter earnings per share has dipped a penny to $2.96 over the past seven days, suggesting an increase of 15.2% from the year-ago period’s reported number.
We expect sales to grow 17.1% to $10.13 billion and adjusted earnings per share to jump 13.3% to $2.91.
Dollar General has a trailing four-quarter negative earnings surprise of 0.7% on average. In the last reported quarter, this Goodlettsville, TN-based player missed the Zacks Consensus Estimate by 8.6%.
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. 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. It has also been focusing on consumable and non-consumable categories to boost traffic.
The company has been steadily expanding its self-checkout facility. We also remain encouraged by the company’s host of initiatives, such as DG Fresh, Fast Track, digitization and private fleet.
However, Dollar General has been encountering challenges related to incremental transportation, distribution and payroll costs, as well as supply-chain headwinds. Also, the company has been witnessing higher selling, general and administrative expenses for a while now.
On Feb 23, management issued preliminary fourth-quarter fiscal 2022 results. It said that the soft performance was due to the below-than-anticipated sales and higher-than-anticipated inventory damages owing to the winter storm Elliott.
Dollar General further informed that fourth-quarter same-store sales came below management’s expectations, despite continued market share gains in sales of both consumable and non-consumable products. The metric grew 5.7% compared to the company’s projection of an approximately 6-7% increase. The softer-than-expected performance was due to lower-than-anticipated same-store sales results in December, primarily due to the storm.
Nonetheless, same-store sales in November and January increased 6.7% and 6.5%, respectively, and were within the company’s earlier provided guidance range, while the metric increased 4.5% in December. Management foresees fourth-quarter earnings in the band of $2.91-$2.96 per share, down from the prior view of $3.15-$3.30.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat. But that’s not the case here, as elaborated below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Dollar General Corporation Price and EPS Surprise
Dollar General Corporation price-eps-surprise | Dollar General Corporation Quote
Dollar General has an Earnings ESP of -0.43% and a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to beat on earnings:
Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +4.12% and a Zacks Rank of 2. OLLI is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at 80 cents per share over the past 30 days, suggesting a 15.9% rise from the year-ago fiscal quarter’s reported number.
Ollie's Bargain Outlet’s top line is expected to grow from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $543 million, suggesting an 8.3% increase from the figure reported in the prior-year quarter. OLLI delivered a negative earnings surprise of 18.7%, on average, in the trailing four quarters. You can seethe complete list of today’s Zacks #1 Rank stocks here.
PVH Corp PVH currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line from the year-ago quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the figure reported in the prior-year quarter. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Skechers SKX currently has an Earnings ESP of +9.74% and a Zacks Rank of 3. The company is likely to register a bottom-line decline when it reports first-quarter 2023 numbers. The Zacks Consensus Estimate of 60 cents earnings per share suggests a decline of 22.1% from the year-ago quarter.
Skechers’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.84 billion, which indicates a rise of 1% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 3.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dollar General Corporation (DG) : Free Stock Analysis Report
Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
