Dollar General Corporation (DG), headquartered in Goodlettsville, Tennessee, is a discount retailer that provides various merchandise products. Valued at $20.3 billion by market cap, the company offers a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health, beauty, pet supplies, and non-consumables such as seasonal merchandise. The leading discount retailer is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Thursday, May 29.
Ahead of the event, analysts expect DG to report a profit of $1.46 per share on a diluted basis, down 11.5% from $1.65 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect DG to report EPS of $5.55, down 6.3% from $5.92 in fiscal 2024. However, its EPS is expected to rise 10.6% year over year to $6.14 in fiscal 2026.
DG stock has underperformed the S&P 500’s ($SPX) 8.7% gains over the past 52 weeks, with shares down 33.9% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.1% gains over the same time frame.
DG’s underperformance can be partly due to store closures and an impairment charge for its pop shelf business.
On Mar. 13, DG shares closed up more than 6% after reporting its Q4 results. Its adjusted EPS of $1.68 beat Wall Street expectations of $1.50. The company’s revenue was $10.30 billion, beating Wall Street forecasts of $10.26 billion. DG expects full-year adjusted EPS to be between $5.10 and $5.80.
Analysts’ consensus opinion on DG stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 28 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 17 give a “Hold.” While DG currently trades above its mean price target of $89.56, the Street-high price target of $110 suggests a upside potential of 17.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
