What is HSBC's Forecast for Dollar General FY2028 Earnings?

Key Points

• HSBC cut its FY2028 EPS estimate for Dollar General to $7.29 from $8.03, bringing it nearly in line with the current consensus estimate of $7.28 per share.
• The firm also updated longer-term projections, forecasting FY2029 EPS of $8.06, FY2030 EPS of $8.79, and FY2031 EPS of $9.49.
• Despite the downgrade, Dollar General recently beat quarterly expectations, reporting $1.93 EPS versus $1.57 expected and $10.91 billion in revenue, while analysts overall still rate the stock a cautious Hold.

Dollar General Corporation (NYSE:DG - Free Report) - Equities research analysts at HSBC lowered their FY2028 earnings estimates for shares of Dollar General in a report released on Monday, May 18th. HSBC analyst D. Bretthauer now anticipates that the company will post earnings per share of $7.29 for the year, down from their prior estimate of $8.03. The consensus estimate for Dollar General's current full-year earnings is $7.28 per share. HSBC also issued estimates for Dollar General's FY2029 earnings at $8.06 EPS, FY2030 earnings at $8.79 EPS and FY2031 earnings at $9.49 EPS.

Several other research firms also recently issued reports on DG. Evercore lowered their price objective on Dollar General from $145.00 to $144.00 in a research note on Tuesday, March 3rd. Jefferies Financial Group reduced their target price on Dollar General from $170.00 to $155.00 and set a "buy" rating on the stock in a report on Monday. BMO Capital Markets upped their target price on Dollar General from $130.00 to $145.00 and gave the company a "market perform" rating in a report on Friday, February 13th. Piper Sandler upped their target price on Dollar General from $132.00 to $133.00 and gave the company a "neutral" rating in a report on Friday, March 13th. Finally, Wolfe Research reiterated an "outperform" rating and issued a $165.00 target price on shares of Dollar General in a report on Thursday, March 12th. Thirteen equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $143.62.

Dollar General Stock Performance

Dollar General stock opened at $104.53 on Thursday. The business has a 50 day moving average of $119.58 and a 200-day moving average of $128.31. Dollar General has a 1 year low of $95.11 and a 1 year high of $158.23. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.13 and a quick ratio of 0.22. The company has a market capitalization of $23.02 billion, a P/E ratio of 15.26, a P/E/G ratio of 1.67 and a beta of 0.28.

Dollar General (NYSE:DG - Get Free Report) last released its quarterly earnings data on Thursday, March 12th. The company reported $1.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.36. Dollar General had a return on equity of 18.66% and a net margin of 3.54%.The company had revenue of $10.91 billion during the quarter, compared to the consensus estimate of $10.78 billion. During the same quarter in the prior year, the firm posted $0.87 earnings per share. The firm's revenue was up 5.9% compared to the same quarter last year. Dollar General has set its FY 2026 guidance at 7.100-7.35 EPS.

Hedge Funds Weigh In On Dollar General

A number of large investors have recently modified their holdings of DG. Fideuram Asset Management Ireland dac bought a new position in shares of Dollar General in the 4th quarter worth $25,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Dollar General by 4,550.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 186 shares of the company's stock worth $25,000 after purchasing an additional 182 shares in the last quarter. Evergreen Advisors LLC bought a new position in shares of Dollar General in the 1st quarter worth $25,000. Root Financial Partners LLC bought a new position in shares of Dollar General in the 3rd quarter worth $26,000. Finally, Annis Gardner Whiting Capital Advisors LLC lifted its holdings in shares of Dollar General by 69.3% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 193 shares of the company's stock worth $26,000 after purchasing an additional 79 shares in the last quarter. 91.77% of the stock is currently owned by institutional investors.

Dollar General Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, April 21st. Investors of record on Tuesday, April 7th were issued a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Tuesday, April 7th. Dollar General's dividend payout ratio (DPR) is currently 34.45%.

More Dollar General News

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

• Positive Sentiment: Zacks highlighted Dollar General as a potential earnings beat candidate, citing its strong history of surprising to the upside and a favorable setup in its next quarterly report. Will Dollar General (DG) Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: HSBC raised its FY2027 EPS estimate for Dollar General to $7.32 from $7.29, which signals modestly improved longer-term profit expectations. HSBC estimate updates for Dollar General
• Positive Sentiment: Multiple articles also framed DG as a value stock, suggesting investors may see support from its lower valuation after recent weakness. Assessing Dollar General (DG) Valuation After Recent Share Price Weakness
• Neutral Sentiment: HSBC and KeyCorp mainly made small forecast revisions for 2027 earnings, with no major change to their overall stance; that keeps sentiment mixed rather than strongly directional. Analyst estimate changes for Dollar General
• Neutral Sentiment: Recent coverage of digital initiatives and customer-experience awards may support the long-term investment story, but it does not appear to be a near-term stock-moving catalyst. Dollar General Awards Spotlight Digital Push As Shares Trade Below Targets
• Negative Sentiment: Valuation-focused coverage noted that Dollar General’s shares have fallen sharply over the past month and quarter, reflecting weaker momentum and investor caution. Assessing Dollar General (DG) Valuation After Recent Share Price Weakness
• Negative Sentiment: Rothschild & Co Redburn reportedly lowered its price target to $90, indicating at least some analysts remain skeptical about near-term upside. Dollar General NYSE: DG Price Target Lowered to $90.00 at Rothschild & Co Redburn

About Dollar General

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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