Dollar General Corp.: Look Ahead to Q1 Earnings Call

🌥️As the countdown begins for Dollar General Corp.‘s Q1 earnings call scheduled on June 1, financial analysts and investors are eagerly waiting to see how the retail giant performed in the first quarter of 2023. Based on the recent financial results, past price performance, and historical guidance, we will delve into the latest news surrounding Dollar General Corp. and assess what we can expect from the company in its upcoming earnings call.

Fundamental Analysis:

Dollar General Corp.‘s financial results from the previous year reflect steady growth and revenue expansion. In Q4 2022, it reported a net income of $659.1 million and a total revenue of $10.20 billion. However, during Q1 2022, it posted a lower net income of $552.7 million and total revenue of $8.75 billion. Despite the dip in its Q1 results, Dollar General Corp.‘s steady overall growth and consistent performance make it a promising investment for long-term investors.

Looking at its financial ratios, Dollar General Corp.‘s earnings per share (EPS) has been increasing gradually over the past five years, growing by an average of 8.21% annually. Furthermore, its price to earnings ratio (P/E) is currently at 21.16, which is in line with the industry average.

Technical Analysis:

Dollar General Corp.‘s past performance indicates that the company’s stock price has been fluctuating over the last few months. The three-month price chart shows that its stock has been declining since late February, having reached an all-time high of $228.6 in mid-February before falling to $206.9 on May 24th.

However, looking at more recent performance, there has been a modest uptick in stock prices over the last month leading up to the earnings report. On May 18th the stock price was $206.7, but five days later on May 24th, it rose to $209.4 reflecting a 0.3% change or an increase of $0.7. Furthermore, in the past five days, trading volume has been 8 million shares increasing by 1.37 percent from the previous day.

Historical Guidance:

Dollar General Corp.‘s strong performance and steady revenue growth over the years are indicative of its ability to navigate through challenges and provide consistent returns for its investors. As one of the largest discount retailers in the US, the company has remained profitable and is one of the few retailers that have performed exceptionally well during the pandemic.

Based on its historical performance, Dollar General Corp. is expected to remain resilient and weather any potential issues that may arise in the retail industry.

Analysts Estimates:

The majority of analysts covering Dollar General Corp. have a buy or hold recommendation on the stock. Out of 31 analysts, 19 rate DG a hold, nine rate it as a buy or overweight, and three rate it as underweight or sell. The consensus price target is $230.08, which represents an upside of just over 10% from its current price of $209.4.

For Q1 2023, analysts expect Dollar General Corp. to report EPS of $2.48, a year-over-year increase of 2.1% with total revenues of $9.44 billion. However, it is worth noting that the retail sector has been impacted by supply chain disruption and labor shortages due to the pandemic and some analysts expect this will impact Dollar General’s Q1 earnings report.

Conclusion:

While previous year financial results were positive, forecasting this year’s earnings result requires consideration of all the variables in play especially supply chain disruptions and labor shortages. Nonetheless, Dollar General Corp.‘s strong financials and steady historical performance make it a promising investment in the retail sector. The recent uptick in the stock price and modest increase in trading volume leading up to the earnings report indicate there is optimism among investors.

Investors should keep in mind that Dollar General Corp.‘s consistent growth, EFT of 0.84%, and dividend yield of 0.73% are what make it an attractive option for those seeking a long-term investment. With all this in mind, we encourage potential investors to tune into Dollar General Corp.‘s Q1 earnings call to gain further insight into its overall performance and potential future trajectory.