The analyst estimates on yahoo show declines in the past 90 days for all periods. These numbers will probably drop as the latest disappointment is factored into the mix.

EPS Trends    Current Qtr     Next Qtr    Current Year    Next Year 
                Jul-06         Oct-06       Jan-07         Jan-08 
Current Est.     0.19           0.21         1.05           1.18  
7 Days Ago       0.19           0.21         1.05           1.18 
30 Days Ago      0.20           0.21         1.08           1.19 
60 Days Ago      0.20           0.22         1.09           1.24 
90 Days Ago      0.23           0.23         1.15           1.32 

http://finance.yahoo.com/q/ae?s=DG

If I estimate 15 cents for each of the first 3 quarters of this year and 50 cents for the 4th quarter, that comes to a full year estimate of 95 cents for the year ending in Jan 2007. Here are the numbers to back up the estimates. I have rounded them off when possible:

                    Jan 2007        Jan 2008
Revenue              $9400           $10300
Cost of Goods         6800             7470
Gross Margin          2600             2830

SG&A expense          2105             2320
Operating Inc.         495              510
Net Interest Exp.       25               32
Income before Tax      470              478
Tax provision          175              178 
NET INCOME             295              300 

Diluted EPS            .95             1.00

Ave. Diluted Shrs      310              300

The one positive thing is that DG continues to grow sales and buy back shares. I think the one thing that could give the shares a boost is if the current pace of expansion is slowed and more shares are bought back. I would even be in favor of DG doing what Family Dollar did last October - selling $250 million of debt and buying back 10 million shares with the proceeds.

JT :-)