Wall Street expects a year-over-year decline in earnings on higher revenues when Dollar General (DG) reports results for the quarter ended April 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on June 3. On th ...

Core Viewpoint - BofA Securities analyst Robert F. Ohmes maintains a Buy rating on Dollar General Corp, increasing the price target from $100 to $115, anticipating positive financial results for the fiscal 2025 first quarter [1]. Financial Performance - Dollar General is expected to report an adjusted EPS of $1.40 for Q1, with comparable sales projected to rise by 1% [1]. - Real-time sales data indicates an acceleration in sales for the quarter, suggesting potential upside compared to current estimates [2]. Operational Insights - Profit gains from reduced shrink are expected to be offset by pressures from store remodel activities and labor costs, with approximately $20 million in expenses related to store closures [3]. - Margin performance is anticipated to improve progressively throughout the year [3]. Strategic Initiatives - The company is expected to benefit from trade-in programs that will support comparable sales and mitigate spending fluctuations among core customers, with adoption gaining traction [4]. - Despite concerns over Walmart's stronger comp performance, Dollar General's significant price gaps, digital expansion momentum, and ongoing store closures at competitors are seen as supportive factors [5]. Market Activity - Dollar General shares are currently trading higher by 1.25% at $101.90 [6].

Core Insights - The article compares Dollar General (DG) and Ross Stores (ROST) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both DG and ROST currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - DG has a forward P/E ratio of 18.04, while ROST has a forward P/E of 23.69, suggesting DG is more attractively priced [5] - The PEG ratio for DG is 2.61, compared to ROST's 2.96, indicating DG may offer better value relative to its expected earnings growth [5] - DG's P/B ratio is 2.99, significantly lower than ROST's P/B of 9.12, further supporting DG's valuation advantage [6] - Based on these metrics, DG holds a Value grade of A, while ROST has a Value grade of C, indicating DG is the superior value option at this time [6]

Group 1: Ross Stores, Inc. - Ross Stores reported quarterly earnings of $1.47 per share, beating the Street estimate of $1.44, with quarterly revenue of $4.99 billion, surpassing the consensus estimate of $4.97 billion [1][2] - The company issued second-quarter GAAP EPS guidance in the range of $1.40 to $1.55, which is below the analyst estimate of $1.65 [2] - Following the guidance, Ross Stores shares fell 11.2% to $135.00 in pre-market trading [2] Group 2: Other Companies - Bicara Therapeutics Inc. shares dipped 20.2% to $12.50 after announcing mixed results from a phase 1/1b trial for ficerafusp alfa [4] - Deckers Outdoor Corporation shares fell 16% to $105.90 after reporting fourth-quarter financial results and expecting first-quarter revenue of $890 million to $910 million, below estimates of $925.86 million [4] - Gyre Therapeutics, Inc. shares fell 14.4% to $9.60 due to a $20.0 million public offering of common stock [4] - Hallador Energy Company shares tumbled 9.7% to $17.00 in pre-market trading [4] - Xerox Holdings Corporation shares dipped 9.6% to $4.62 after reducing its quarterly dividend from $0.125 per share to $0.025 [4] - MINISO Group Holding Limited shares fell 8.5% to $20.30 following third-quarter results [4] - Workday, Inc. shares declined 6.5% to $254.40 after issuing second-quarter sales guidance below estimates [4] - Navitas Semiconductor Corporation shares dipped 6.3% to $4.73 after a significant jump of 164% on Thursday due to collaboration with Nvidia [4]

Core Viewpoint - Burlington Stores (BURL) is anticipated to report flat earnings of $1.42 per share for the quarter ended April 2025, with revenues expected to reach $2.52 billion, reflecting a 6.9% increase year-over-year [3][12]. Earnings Expectations - The earnings report is scheduled for release on May 29, 2025, and could influence the stock price significantly depending on whether the actual results exceed or fall short of expectations [2][3]. - The consensus EPS estimate has been revised 1.17% higher in the last 30 days, indicating a positive reassessment by analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP for Burlington Stores is +3.45%, suggesting a higher likelihood of beating the consensus EPS estimate [11][10]. - The company has a Zacks Rank of 3, which indicates a hold position, but combined with a positive Earnings ESP, it suggests a favorable outlook for an earnings beat [11][8]. Historical Performance - Burlington Stores has a strong track record, having beaten consensus EPS estimates in the last four quarters, including a surprise of +8.24% in the most recent quarter [12][13]. Industry Context - In comparison, Costco (COST) is expected to report earnings of $4.25 per share for the same quarter, reflecting a year-over-year increase of +12.4%, with revenues projected at $63.14 billion, up 7.9% [17]. - Costco's Earnings ESP is -0.61%, indicating a more challenging outlook for beating consensus estimates, despite a history of surpassing expectations in three out of the last four quarters [18].

Shares of Dollar General Corporation DG are trading lower Wednesday. This follows Tuesday’s gain of more than 4%. There is a good chance that the rally will get back into gear, and the price will move higher.Benzinga made Dollar General our Stock of the Day because it has just broken out.Resistance is a price or a price zone where there is a large amount of sell interest. Rallies have a tendency to pause or reverse after they reach resistance.Stocks move lower after they reach resistance when some of the tr ...

Financial Data and Key Metrics Changes - Consolidated comp sales growth of 3% was achieved, at the high end of the company's plan, driven primarily by an increase in customer transactions [12][8] - Pretax profit margin was 10.3%, down 80 basis points year-over-year but above expectations, while diluted earnings per share reached $0.92, exceeding forecasts [13][14] - Gross margin decreased by 50 basis points, mainly due to unfavorable inventory hedges [13] Business Line Data and Key Metrics Changes - Marmaxx division reported a 2% increase in comp sales with a segment profit margin of 13.7%, down 50 basis points [14] - HomeGoods division experienced a 4% increase in comp sales, with a segment profit margin of 10.2%, up 70 basis points [16] - TJX Canada saw a 5% increase in comp sales, with a segment profit margin of 10.6%, down 170 basis points due to unfavorable foreign exchange [18] - TJX International reported a 5% increase in comp sales, with a segment profit margin of 4.2%, up 20 basis points [19] Market Data and Key Metrics Changes - Inventory levels increased by 15%, with inventory per store up 7% compared to the previous year, indicating strong merchandise availability [20] - The company is well-positioned to take advantage of market opportunities despite tariff pressures [11][22] Company Strategy and Development Direction - The company remains confident in its long-term growth strategy, emphasizing its value proposition and flexibility in operations [10][24] - The management highlighted the importance of a diverse product mix and strong vendor relationships to navigate current market challenges [25][26] - The company plans to continue expanding its market share in both the U.S. and international markets [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current tariff and macroeconomic environment, citing a long track record of resilience [22][32] - The company anticipates a strong second quarter, supported by effective initiatives to drive sales and traffic [11][36] - Management noted that customer transactions are increasing across all income demographics, indicating a broad appeal of the company's offerings [83][84] Other Important Information - The company is maintaining its full-year guidance for comp sales growth, pretax profit margin, and diluted earnings per share, despite tariff pressures [34][35] - The management emphasized the importance of flexibility in sourcing and pricing strategies to maintain competitive advantages [32][37] Q&A Session Summary Question: Inventory availability in the current environment - Management acknowledged the current challenges with delayed shipments but expressed confidence in inventory levels and the ability to adapt to changing market conditions [43][45] Question: Comp trends at Marmaxx - Management noted that comp sales improved as the weather conditions changed, leading to a strong start in the second quarter [56][58] Question: Vendor pricing strategies - Management discussed the flexibility in pricing strategies and the ability to negotiate with vendors to maintain competitive pricing [66][68] Question: Direct sourcing percentage and income demographics - Management indicated that less than 10% of products are directly sourced, and sales are strong across all income demographics, with a slight lean towards lower-income customers [80][83] Question: Margin trajectory for HomeGoods - Management expressed optimism about continued margin improvement for HomeGoods, despite challenges in sourcing from China [92][94]

Target (TGT) came out with quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $2.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -19.75%. A quarter ago, it was expected that this retailer would post earnings of $2.25 per share when it actually produced earnings of $2.41, delivering a surprise of 7.11%.Over the last four quarters, the company has surpa ...

Core Insights - American Eagle Outfitters (AEO) and Nordstrom (JWN) are competing in the Retail – Apparel and Shoes sector, each adapting to changing consumer preferences and economic challenges with distinct strategies [1][4] - Nordstrom targets an affluent demographic through a dual-channel model, combining full-line department stores with Nordstrom Rack, and emphasizes a high-touch shopping experience [2] - AEO focuses on a younger, value-conscious audience with its brands American Eagle and Aerie, leveraging trends in comfort and digital engagement [3] Nordstrom's Strategy and Performance - Nordstrom is pursuing three main goals: growing the Nordstrom brand, improving operations, and strengthening Nordstrom Rack, with a focus on inventory management and faster product delivery [5] - The company has seen significant online sales contributions, utilizing new technologies for inventory management and enhancing customer engagement [6] - Improvements in the supply chain have led to a 40% reduction in return processing time, increasing efficiency and sales potential [7] American Eagle's Strategy and Performance - AEO is implementing its Powering Profitable Growth Plan, focusing on digital innovation, supply chain automation, and customer experience [8] - The company reported strong operating income growth in Q4 of fiscal 2024, driven by effective cost controls and improved operating margins [9] - Aerie is a key growth driver for AEO, focusing on innovation and expanding customer reach in the body-positive market [10] Financial Outlook and Comparisons - AEO anticipates mid-single-digit revenue declines for Q1 of fiscal 2025, with projected operating income of $20-$25 million, impacted by a stronger U.S. dollar [12] - For fiscal 2025, AEO expects low-single-digit revenue dips and a gross margin decline, with operating income projected at $360-$375 million [13] - In contrast, Nordstrom's fiscal 2025 sales and EPS estimates imply year-over-year growth of 2.2% and 1.8%, respectively [14] Valuation and Stock Performance - Nordstrom trades at a forward P/E ratio of 10.89X, below the industry average, indicating reasonable valuation [15] - AEO has a lower P/E ratio of 9.68, positioning it as a more value-oriented option [15] - Over the past year, Nordstrom has gained 16.5%, while AEO has declined by 47.9%, highlighting Nordstrom's stronger stock performance [16] Conclusion - Nordstrom is positioned as a stronger long-term investment due to consistent strategic execution and brand equity, expanding its digital capabilities [18] - AEO shows growth potential but faces volatility and uncertainty, particularly with its fiscal 2025 outlook [19] - For investors seeking stability and long-term value, Nordstrom is the preferred choice, currently rated as a Zacks Rank 2 (Buy) [20]

Wall Street analysts forecast that Ross Stores (ROST) will report quarterly earnings of $1.43 per share in its upcoming release, pointing to a year-over-year decline of 2.1%. It is anticipated that revenues will amount to $4.97 billion, exhibiting an increase of 2.3% compared to the year-ago quarter.The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised thei ...