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Earnings Watch For December 11 (DG, CMVT)

Dollar General (DG) is scheduled to report its third quarter results before the markets open. The discount retailer is expected to earn $0.60 per share, higher than $0.50 per share reported last year. Besides, quarterly revenues are anticipated at $3.96 billion, up from last year's $3.60 billion. The shares closed Monday at $46.57. (52-wk H/L $56.04/$39.83)

The company's shares have pulled back and are broadly on a downtrend since early July, losing roughly 16 percent, although they have seen a good run up through the economic downturn. A positive financial performance could push the stock towards an upside resistance around 46.93. Further resistance levels ahead of the initial resistance level are around 47.58, its 21-day MA of 48.05, 50-day MA of 48.74, 200-day MA of 48.98 and 100-day MA of 49.93. The stock has strong support around the 45.63 level.

Barclays has an 'Overweight' rating on the company's stock despite its 'Neutral' view on the industry, while it has a $58 price target for the stock. The firm said in its preview of the company's third quarter results that the company's basic, value focused merchandise offering in a conveniently located store positions the company well to capture additional market share from middle and upper income consumers. Barclays expects the company to maintain mid-single digit comps in the second half of 2012 and in the fiscal year 2013.

Comverse Technology Inc. (CMVT), a provider of software-based products, is scheduled to report third quarter results. Earnings and revenue for the quarter are expected to be $0.12 per share and $399.77 million, respectively. A year earlier, the company earned $0.16 per share on revenues of $453.08 million. CMVT closed Monday's regular trade at $3.55. (52-wk H/L $7.00/$2.99)

by RTTNews Staff Writer

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