Dollar General Corp. is scheduled to report earnings before Thursday's open. Dollar General's stock hit a record high of $96.88/share in 2016 and is currently trading near $72/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
Dollar General is expected to earn $1.41/share on $5.98 billion in revenue. Meanwhile, the so-called Whisper number is $1.41. The Whisper number is the Street's unofficial view on earnings.
Company Profile & Various Businesses:
Here is the company profile courtesy of Thomson Reuters Eikon:
Dollar General Corporation, incorporated on May 29, 1998, is a discount retailer. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. The Company's consumables category includes paper and cleaning products (such as paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry and other home cleaning supplies); packaged food (such as cereals, canned soups and vegetables, condiments, spices, sugar and flour); perishables (such as milk, eggs, bread, frozen meals, beer and wine); snacks (such as candy, cookies, crackers, salty snacks and carbonated beverages); health and beauty (such as over-the-counter medicines and personal care products, such as soap, body wash, shampoo, dental hygiene and foot care products); pet (such as pet supplies and pet food), and tobacco products. Its seasonal products include decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, and bed and bath soft goods. Its apparel products include casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.
The Company operates approximately 12,575 stores that are located in over 43 states, with majority concentration of stores located in the southern, southwestern, midwestern and eastern United States. Its merchandise includes national brands from manufacturers, as well as private brand selections. The Company offers its merchandise through its small-box locations. Its stores average approximately 7,400 square feet of selling space. Its stores are supported by over 13 distribution centers located strategically throughout its geographic footprint.
Competition:
The Company competes with Family Dollar, Dollar Tree, Fred's, 99 Cents Only, Walmart, Target, Kroger, Aldi, Walgreens, CVS and Rite Aid.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
