Earnings Preview: Dollar General

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Dollar General
DG
is set to release its quarterly earnings results after the closing bell on Tuesday, June 4. Heading into the key report the stock has been surging in 2013, and is up around 22 percent year-to-date. On Thursday, shares are sitting just under $54.00, which compares to a 52-week high in the name of $56.00. Heading into the release, Wall Street analysts anticipate the company will report earnings per share growth of roughly 13 percent to $0.71 from the $0.63 the company reported last year. Revenue is expected to be up a little less than 9 percent from the year ago quarter to $4.24 billion. Over the last 3 months, the consensus EPS estimate for Dollar General has fallen from $0.73 to the current estimate of $0.71. The stock currently trades at a P/E ratio of just over 16, which is less than the industry average of 23 and the sector average of nearly 27. The company does not currently pay a dividend. The stock is attractive due to its consistent revenue and earnings growth with sales, net income, and margins moving up every year since 2009. The company currently has a market cap of around $17.7 billion and is based in Goodlettsville, Tennessee.
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