Dollar General Corporation (NYSE:DG) Earnings Fall Short

Dollar General Corporation (NYSE:DG) Earnings Fall Short

Dollar General Corporation (NYSE:DG) Earnings Fall Short

Dollar General (DG) reported weaker-than-expected earnings for the fourth quarter though revenue and same-store sales topped views. Dollar General earnings guidance also was light. Dollar General stock tumbled below a buy point.

Shayne Heffernan said “you know things are good when bottom end retailers are suffering”

Dollar General Earnings

Estimates: Wall Street expected Dollar General earnings per share to pop 27% to $1.88 as revenue climbs 8% to $6.603 billion, according to Zacks Investment Research. Same-store sales were seen rising 2.6%, according to Consensus Metrix.

Results: Dollar General earnings came in at $1.84 a share. Revenue grew 8.5% to $6.65 billion. Same-store sales climbed 4%.

Outlook: The specialty discounter sees 2019 EPS of $6.30-$6.50. Wall Street expected Dollar General earnings of $6.66.

Dollar General also raised its dividend by 10% and announced a $1 billion stock buyback program.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 116.58.

The projected lower bound is: 106.84.

The projected closing price is: 111.71.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 40.8791. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 30.89. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 125 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -410.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 15 period(s) ago.

Rex Takasugi – TD Profile

DOLLAR GNRL CORP closed down -9.040 at 111.640. Volume was 197% above average (trending) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
111.500 112.350 108.750 111.640 1,582,778

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 118.65 116.02 107.40
Volatility: 47 27 32
Volume: 495,723 447,149 545,992

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DOLLAR GNRL CORP gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DOLLAR GNRL CORP is currently 3.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of DG.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on DG.N and have had this outlook for the last 0 periods.

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