11:45 AM EST, 12/03/2024 (MT Newswires) -- Dollar General ( DG ) is facing a "very low expectation setup" for its Q3 results, Oppenheimer said in an earnings preview Tuesday.

The company is expected to report its Q3 results on Thursday, with earnings risk due to low expectations, potential hurricane impacts, and ongoing macroeconomic and competitive challenges.

The investment firm expects fiscal Q3 earnings of $0.90 per share, below the consensus estimate of $0.94.

The firm predicts management may revise its fiscal 2024 EPS guidance downward, closer to the lower end of the $5.50-$6.20 range.

On the revenue front, the company should see "another soft quarter driven by ongoing discretionary category headwinds and expectations for continued pressures on the company's low-end consumer," according to the note.

Oppenheimer said it is focused on Dollar General's ( DG ) efforts to drive sustained comp/earnings growth and reduce leverage, while remaining sidelined on its entire dollar store coverage due to competitive and macro dynamics.

The investment firm has a perform rating on Dollar General ( DG ).

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