HSBC Has Negative Outlook for Dollar General Q2 Earnings

Key Points

• HSBC trimmed its Q2 2027 EPS estimate for Dollar General to $1.99 from $2.01 and kept a Hold rating with a $125 price target, reflecting a cautious view on near-term earnings.
• Despite HSBC’s softer outlook, Dollar General recently beat Q1 expectations, posting $2.00 EPS versus $1.89 expected, while revenue rose 3.4% year over year to $10.79 billion.
• Wall Street remains mixed: the stock has a consensus Hold rating with an average target price of $131.27, and several firms have recently lowered or adjusted their price targets.

Dollar General Corporation (NYSE:DG - Free Report) - Equities research analysts at HSBC dropped their Q2 2027 earnings per share estimates for shares of Dollar General in a research report issued on Tuesday, June 9th. HSBC analyst D. Bretthauer now anticipates that the company will post earnings per share of $1.99 for the quarter, down from their prior forecast of $2.01. HSBC has a "Hold" rating and a $125.00 price objective on the stock. The consensus estimate for Dollar General's current full-year earnings is $7.35 per share. HSBC also issued estimates for Dollar General's Q3 2027 earnings at $1.38 EPS and Q4 2027 earnings at $1.91 EPS.

Other analysts have also issued research reports about the company. Daiwa Securities Group decreased their price target on Dollar General from $136.00 to $111.00 and set a "neutral" rating on the stock in a research note on Thursday, June 4th. Truist Financial boosted their price target on Dollar General from $109.00 to $114.00 and gave the company a "hold" rating in a research note on Tuesday, June 2nd. Morgan Stanley decreased their price target on Dollar General from $150.00 to $132.00 and set an "equal weight" rating on the stock in a research note on Wednesday, June 3rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dollar General in a research note on Friday, April 10th. Finally, The Goldman Sachs Group decreased their price target on Dollar General from $130.00 to $128.00 and set a "neutral" rating on the stock in a research note on Wednesday, June 3rd. Ten investment analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $131.27.

Dollar General Price Performance

Shares of DG stock opened at $110.07 on Thursday. The stock has a 50 day moving average of $113.30 and a two-hundred day moving average of $128.90. The company has a current ratio of 1.17, a quick ratio of 0.25 and a debt-to-equity ratio of 0.52. Dollar General has a 12 month low of $95.11 and a 12 month high of $158.23. The company has a market capitalization of $24.28 billion, a P/E ratio of 15.57, a P/E/G ratio of 1.67 and a beta of 0.26.

Dollar General (NYSE:DG - Get Free Report) last released its earnings results on Tuesday, June 2nd. The company reported $2.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.89 by $0.11. The firm had revenue of $10.79 billion for the quarter, compared to analyst estimates of $10.81 billion. Dollar General had a return on equity of 18.65% and a net margin of 3.63%.The company's revenue was up 3.4% on a year-over-year basis. During the same quarter last year, the firm posted $1.78 EPS. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS.

Institutional Investors Weigh In On Dollar General

Institutional investors and hedge funds have recently made changes to their positions in the company. Fideuram Asset Management Ireland dac bought a new stake in shares of Dollar General during the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd raised its position in shares of Dollar General by 4,550.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 186 shares of the company's stock worth $25,000 after acquiring an additional 182 shares during the last quarter. Evergreen Advisors LLC bought a new stake in shares of Dollar General during the first quarter worth $25,000. Annis Gardner Whiting Capital Advisors LLC raised its position in shares of Dollar General by 69.3% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 193 shares of the company's stock worth $26,000 after acquiring an additional 79 shares during the last quarter. Finally, Reflection Asset Management bought a new stake in shares of Dollar General during the fourth quarter worth $28,000. Institutional investors own 91.77% of the company's stock.

Dollar General Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th will be given a dividend of $0.59 per share. The ex-dividend date is Tuesday, July 7th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.1%. Dollar General's payout ratio is presently 33.38%.

Trending Headlines about Dollar General

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Dollar General’s profitable same-day delivery business is reportedly strong enough to support a pilot subscription program, suggesting a potentially higher-margin way to monetize e-commerce demand. Dollar General's profitable delivery business spurs subscription pilot
• Positive Sentiment: Recent coverage highlighted stronger Q1 same-store sales, driven by higher traffic and positive comps across categories, reinforcing the view that Dollar General’s value proposition is resonating with customers. Dollar General's Same-Store Sales Strength Suggests More Growth Ahead
• Positive Sentiment: The company’s strong Q1 beat, raised full-year guidance, and dividend declaration continue to support sentiment around earnings momentum and shareholder returns. What Dollar General (DG)'s Strong Q1 Beat, Guidance Hike and Dividend Move Means For Shareholders
• Neutral Sentiment: Loop Capital raised several long-range earnings estimates for Dollar General, but kept a Hold rating and a $115 target, which suggests the brokerage sees steady improvement but not a major re-rating yet.
• Neutral Sentiment: Wolfe Research and Gordon Haskett also made mixed forecast changes, with some longer-term estimates lowered and others left more favorable; overall, the revisions point to a still-cautious but stable outlook for DG’s earnings trajectory.
• Neutral Sentiment: Dollar General has also been mentioned in several “value stock” and “non-tech stock” idea lists, which may add to investor interest but is not a direct catalyst.

Dollar General Company Profile

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation's prominent low-price retailers focused on convenience and value.

Dollar General's stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.

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