Thursday, December 3, 2015

$DG reports #earnings 1ct Beat. #in



Quick take, comps of 2.3% slowed but were facing tough numbers the last 2 years in Q3.  Q4 year ago comparisons ease making it a little easier to drive topline.  Gross margins up a plus.  That said the company did say that the customer is shopping closer to need in their release which is a sound of caution.  EPS at 1ct above the street and putting the year and Q4 range around street numbers probably will be a 'sigh of relief.'  Stock down here could get a lift today since it seems 'not so bad'.

Conference call at 10am so we'll see what they say about the consumer and Q4.

Net net we expected given where the stock is that the risk/reward is favorable and the stock can trade up today.

See our full preview report.

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. 

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