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What to Expect From Dollar General (DG) in Q2 Earnings?
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Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Aug 25 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $9.39 billion, indicating an improvement of 8.6% 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 second-quarter earnings per share has risen by a penny to $2.93 over the past 30 days, suggesting an increase of 8.9% from the year-ago period’s reported number.
We expect second-quarter total revenues to be up 8.6% year over year to $9,394.1 million and the bottom line to rise 3.9% to $2.80 per share.
Dollar General has a trailing four-quarter earnings surprise of 2.8%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 3.9%.
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. To boost traffic, Dollar General has been focusing on both the consumable and non-consumable categories.
To make shopping convenient and contactless, the company has partnered with DoorDash, the last-mile logistics platform, to offer the same-day delivery of essential household items. The company has been steadily expanding its self-checkout facility.
We remain encouraged by the company’s host of initiatives, such as DG Fresh, Fast Track, digitization and private fleet, which are likely to have contributed to same-store sales growth and margin expansion. We anticipate same-store sales to increase 3.3% in the second quarter, a sharp acceleration from a decline of 0.1% witnessed in the first quarter.
However, margins remain an area to watch. Product cost inflation, higher labor costs, supply-chain bottlenecks and seasonal markdowns might have weighed on margins. We expect second-quarter SG&A expenses, as a percentage of total revenues, to deleverage 60 basis points to 22.4%. As a result, we anticipate an operating margin contraction of 60 basis points to 9.2%.
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 +1.04% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $4.90 suggests an increase of 7.5% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty’s top line is anticipated to have risen year over year. The consensus mark for ULTA’s revenues is pegged at $2.2 billion, indicating an increase of 12% from the figure reported in the year-ago quarter. Ulta Beauty has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +1.75% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.57 suggests an increase of 27.6% from the year-ago quarter.
Dollar Tree’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.79 billion, which indicates an increase of 7% from the figure reported in the prior-year quarter. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 23 cents suggests a decline of 86.5% from the year-ago quarter.
Abercrombie & Fitch’s top line is anticipated to have declined year over year. The consensus mark for ANF’s revenues is pegged at $847.8 billion, indicating a decline of 2% from the figure reported in the year-ago quarter.
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What to Expect From Dollar General (DG) in Q2 Earnings?
Dollar General Corporation (DG - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Aug 25 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $9.39 billion, indicating an improvement of 8.6% 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 second-quarter earnings per share has risen by a penny to $2.93 over the past 30 days, suggesting an increase of 8.9% from the year-ago period’s reported number.
We expect second-quarter total revenues to be up 8.6% year over year to $9,394.1 million and the bottom line to rise 3.9% to $2.80 per share.
Dollar General has a trailing four-quarter earnings surprise of 2.8%, on average. In the last reported quarter, this Goodlettsville, TN-based player outperformed the Zacks Consensus Estimate by a margin of 3.9%.
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. To boost traffic, Dollar General has been focusing on both the consumable and non-consumable categories.
To make shopping convenient and contactless, the company has partnered with DoorDash, the last-mile logistics platform, to offer the same-day delivery of essential household items. The company has been steadily expanding its self-checkout facility.
We remain encouraged by the company’s host of initiatives, such as DG Fresh, Fast Track, digitization and private fleet, which are likely to have contributed to same-store sales growth and margin expansion. We anticipate same-store sales to increase 3.3% in the second quarter, a sharp acceleration from a decline of 0.1% witnessed in the first quarter.
However, margins remain an area to watch. Product cost inflation, higher labor costs, supply-chain bottlenecks and seasonal markdowns might have weighed on margins. We expect second-quarter SG&A expenses, as a percentage of total revenues, to deleverage 60 basis points to 22.4%. As a result, we anticipate an operating margin contraction of 60 basis points to 9.2%.
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 +1.04% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $4.90 suggests an increase of 7.5% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty’s top line is anticipated to have risen year over year. The consensus mark for ULTA’s revenues is pegged at $2.2 billion, indicating an increase of 12% from the figure reported in the year-ago quarter. Ulta Beauty has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +1.75% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.57 suggests an increase of 27.6% from the year-ago quarter.
Dollar Tree’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.79 billion, which indicates an increase of 7% from the figure reported in the prior-year quarter. DLTR has a trailing four-quarter earnings surprise of 13.1%, on average.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 23 cents suggests a decline of 86.5% from the year-ago quarter.
Abercrombie & Fitch’s top line is anticipated to have declined year over year. The consensus mark for ANF’s revenues is pegged at $847.8 billion, indicating a decline of 2% from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.