Wolfe Research Predicts Reduced Earnings for Dollar General

Key Points

• Wolfe Research trimmed its Q2 2027 EPS estimate for Dollar General to $1.97 from $2.02, while keeping an Outperform rating and a $165 price target on the stock.
• Dollar General’s most recent quarter was stronger than expected, with EPS of $2.00 beating estimates even as revenue of $10.79 billion slightly missed forecasts. The company also raised its FY 2026 EPS guidance to $7.20-$7.45.
• Analyst sentiment remains mixed: the stock currently carries an average Hold rating with a consensus target price of $131.27, reflecting both optimism about recent performance and caution about future growth.

Dollar General Corporation (NYSE:DG - Free Report) - Stock analysts at Wolfe Research dropped their Q2 2027 earnings estimates for Dollar General in a research note issued on Tuesday, June 2nd. Wolfe Research analyst S. Hanus now expects that the company will post earnings per share of $1.97 for the quarter, down from their prior forecast of $2.02. Wolfe Research currently has a "Outperform" rating and a $165.00 target price on the stock. The consensus estimate for Dollar General's current full-year earnings is $7.33 per share. Wolfe Research also issued estimates for Dollar General's Q3 2027 earnings at $1.37 EPS, Q2 2028 earnings at $2.18 EPS, Q3 2028 earnings at $1.55 EPS and FY2028 earnings at $8.16 EPS.

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

Several other research firms have also recently commented on DG. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $149.00 price objective on shares of Dollar General in a research report on Wednesday, June 3rd. Freedom Capital cut shares of Dollar General from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 2nd. UBS Group reaffirmed a "buy" rating on shares of Dollar General in a research report on Wednesday, May 27th. BMO Capital Markets cut their price objective on shares of Dollar General from $135.00 to $120.00 and set a "market perform" rating on the stock in a research report on Wednesday, June 3rd. Finally, Truist Financial boosted their price objective on shares of Dollar General from $109.00 to $114.00 and gave the company a "hold" rating in a research report on Tuesday, June 2nd. Ten analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Dollar General currently has an average rating of "Hold" and a consensus target price of $131.27.

Dollar General Trading Up 2.4%

DG opened at $109.34 on Wednesday. The stock has a market capitalization of $24.12 billion, a P/E ratio of 15.46, a P/E/G ratio of 1.63 and a beta of 0.26. Dollar General has a 12 month low of $95.11 and a 12 month high of $158.23. The firm's fifty day simple moving average is $113.45 and its 200 day simple moving average is $128.83. 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 Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th will be paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 2.2%. The ex-dividend date is Tuesday, July 7th. Dollar General's payout ratio is presently 33.38%.

Institutional Investors Weigh In On Dollar General

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Dollar General by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,317 shares of the company's stock valued at $2,314,000 after buying an additional 1,185 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of Dollar General by 12.3% during the 1st quarter. NewEdge Advisors LLC now owns 10,450 shares of the company's stock worth $919,000 after purchasing an additional 1,148 shares during the last quarter. Woodline Partners LP increased its stake in shares of Dollar General by 40.7% during the 1st quarter. Woodline Partners LP now owns 18,580 shares of the company's stock worth $1,634,000 after purchasing an additional 5,373 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Dollar General during the 2nd quarter worth about $211,000. Finally, Jump Financial LLC acquired a new position in shares of Dollar General during the 2nd quarter worth about $209,000. 91.77% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Dollar General

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

• Positive Sentiment: Dollar General reported a solid Q1 with sales of about $10.8 billion and earnings per share of $2.00, topping estimates, while also raising full-year 2026 guidance for net sales and diluted EPS. The company also declared a $0.59 quarterly dividend, reinforcing confidence in cash generation. What Dollar General (DG)'s Strong Q1 Beat, Guidance Hike and Dividend Move Means For Shareholders
• Positive Sentiment: Same-store sales rose 2% in the quarter, driven by higher traffic and broad-based strength across categories, suggesting the business is still gaining momentum and may support further growth ahead. Dollar General's Same-Store Sales Strength Suggests More Growth Ahead
• Positive Sentiment: Analysts and market commentators highlighted Dollar General as a value-oriented defensive name and noted that the shares have been outperforming on a strong trading day, which may be adding to investor interest. Dollar General Corp. stock outperforms competitors on strong trading day
• Neutral Sentiment: Several articles focused on analyst questions, style-score rankings, and comparisons with other consumer stocks, but these were mostly commentary rather than new business developments. Here's Why Dollar General (DG) is a Strong Value Stock
• Neutral Sentiment: Analysts remain mixed on Dollar General, indicating some uncertainty about how quickly the company can sustain its recent improvement. Analysts Conflicted on These Consumer Goods Names: Dollar General (DG) and Natural Grocers (NGVC)
• Negative Sentiment: Despite the better quarter, one recap noted that the market initially reacted negatively to the earnings call because investors still have concerns about external pressures and competitive dynamics. 5 Insightful Analyst Questions From Dollar General’s Q1 Earnings Call

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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