Dollar General Earnings Preview: Analysts Expect Higher EPS, Revenue

Dollar General (NYSE: DG) announces its next round of earnings this Monday, December 5, 2011. Here's Benzinga's essential guide to Dollar General's third quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 48 cents/share and revenues of $3.57 billion. Dollar General's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 39 cents/share on revenues of $3.22 billion. We'll know on Monday whether the company has managed the estimated 23.1% increase in EPS and 10.9% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

(Estimates Source: Zacks)

Stock Performance:

At last check, shares of Dollar General were trading at $39.93. Shares are up 30.2% year to date. For a full 12 months, the return has risen by 16.1%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Dollar General's peers.

• Big Lots (NYSE: BIG): Hold with a $0.50 recent quarter EPS
• Costco Wholesale (NASDAQ: COST): Hold with a $1.08 recent quarter EPS
• Dollar Tree Stores (NASDAQ: DLTR): Moderate Buy with a $0.87 recent quarter EPS
• Family Dollar Stores (NYSE: FDO): Hold with a $0.66 recent quarter EPS

The retail-discount company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Dollar General is a discount retailer in the United States and operates convenient-sized stores that deliver everyday low prices on products that families use every day.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Dollar General earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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