Dollar General (NYSE:DG) Releases FY 2025 Earnings Guidance

Key Points

• Dollar General has updated its FY 2025 earnings guidance, projecting earnings per share (EPS) of $5.800-$6.300 and revenue between $42.4 billion and $42.7 billion, aligning closely with analysts' estimates.
• Recent analyst reports show a generally positive outlook on Dollar General, with price targets raised by firms like Guggenheim and UBS, contributing to its current consensus rating of "Hold".
• The company declared a quarterly dividend of $0.59 per share, representing a yield of 2.1%, with a payout ratio currently at 45.04%.

Dollar General (NYSE:DG - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.800-6.300 for the period, compared to the consensus estimate of 5.770. The company issued revenue guidance of $42.4 billion-$42.7 billion, compared to the consensus revenue estimate of $42.4 billion.

Dollar General Price Performance

Shares of DG stock traded down $2.96 during trading hours on Monday, hitting $108.75. The stock had a trading volume of 4,580,211 shares, compared to its average volume of 3,104,731. The stock has a market capitalization of $23.94 billion, a price-to-earnings ratio of 20.14, a PEG ratio of 2.22 and a beta of 0.29. Dollar General has a one year low of $66.43 and a one year high of $117.95. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.25 and a quick ratio of 0.27. The stock's 50-day moving average price is $112.02 and its two-hundred day moving average price is $98.44.

Dollar General (NYSE:DG - Get Free Report) last announced its earnings results on Thursday, August 28th. The company reported $1.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.30. The business had revenue of $10.73 billion during the quarter, compared to analyst estimates of $10.68 billion. Dollar General had a return on equity of 17.97% and a net margin of 2.86%.The company's revenue for the quarter was up 5.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.70 earnings per share. Dollar General has set its FY 2025 guidance at 5.800-6.300 EPS. Equities analysts forecast that Dollar General will post 5.75 EPS for the current year.

Dollar General Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 21st. Stockholders of record on Tuesday, October 7th will be given a dividend of $0.59 per share. The ex-dividend date of this dividend is Tuesday, October 7th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.2%. Dollar General's dividend payout ratio is presently 43.70%.

Analysts Set New Price Targets

DG has been the topic of a number of research analyst reports. Evercore ISI boosted their price objective on shares of Dollar General from $118.00 to $120.00 and gave the company an "in-line" rating in a report on Tuesday, August 12th. UBS Group boosted their price objective on shares of Dollar General from $128.00 to $135.00 and gave the company a "buy" rating in a report on Friday. Piper Sandler increased their price target on Dollar General from $115.00 to $117.00 and gave the stock a "neutral" rating in a research report on Friday. Bank of America upped their target price on Dollar General from $115.00 to $135.00 and gave the stock a "buy" rating in a research note on Wednesday, June 4th. Finally, Gordon Haskett upgraded Dollar General from a "reduce" rating to an "accumulate" rating in a research note on Tuesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and sixteen have issued a Hold rating to the company. According to MarketBeat, Dollar General currently has a consensus rating of "Hold" and an average price target of $112.79.

Insider Activity

In related news, EVP Kathleen A. Reardon sold 6,438 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $111.56, for a total transaction of $718,223.28. Following the completion of the transaction, the executive vice president owned 41,646 shares in the company, valued at $4,646,027.76. This represents a 13.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Emily C. Taylor sold 1,969 shares of the company's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $113.00, for a total transaction of $222,497.00. Following the transaction, the executive vice president owned 46,563 shares of the company's stock, valued at approximately $5,261,619. This trade represents a 4.06% decrease in their position. The disclosure for this sale can be found here. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Dollar General

A number of hedge funds have recently bought and sold shares of DG. MUFG Securities EMEA plc acquired a new stake in Dollar General in the 2nd quarter valued at about $74,000. Jump Financial LLC acquired a new stake in shares of Dollar General during the 2nd quarter worth approximately $209,000. Stonebridge Capital Advisors LLC acquired a new stake in shares of Dollar General during the 2nd quarter worth approximately $229,000. Pitcairn Co. acquired a new stake in shares of Dollar General during the 2nd quarter worth approximately $231,000. Finally, ICONIQ Capital LLC acquired a new stake in shares of Dollar General during the 2nd quarter worth approximately $233,000. Institutional investors and hedge funds own 91.77% of the company's stock.

About Dollar General

Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as paper towels, bath tissues, paper dinnerware, trash and storage bags, disinfectants, and laundry products; packaged food comprising cereals, pasta, canned soups, fruits and vegetables, condiments, spices, sugar, and flour; and perishables that include milk, eggs, bread, refrigerated and frozen food, beer, and wine.