Dollar General Corporation's Quarterly Earnings Preview

• Analysts estimate Dollar General's EPS to be $1.47, indicating a 10.9% decline from the previous year, yet revenue is expected to rise by 3.7% to $10.28 billion.
• The stability of the consensus EPS estimate over the past 30 days suggests potential investor actions surrounding the upcoming earnings report.
• BofA Securities analyst Robert F. Ohmes has reiterated a Buy rating for Dollar General, increasing the price target from $100 to $115, with a forecast of a first-quarter adjusted EPS of $1.40 and a 1% rise in comparable sales.

Dollar General Corporation, trading as NYSE:DG, is a prominent discount retailer in the United States. The company offers a wide range of products, including food, household items, and apparel, catering to budget-conscious consumers. As Dollar General prepares to release its quarterly earnings on June 3, 2025, analysts have set their sights on key financial metrics, including earnings per share (EPS) and revenue projections.

Analysts estimate Dollar General's EPS to be $1.47, reflecting a 10.9% decline from the previous year. Despite this drop, the company's revenue is expected to rise by 3.7% year over year, reaching $10.28 billion. This revenue growth suggests that Dollar General continues to attract customers, even as it faces challenges in maintaining its profit margins. The stability of the consensus EPS estimate over the past 30 days indicates that analysts have not revised their forecasts, which often signals potential investor actions.

The upcoming earnings report is crucial for Dollar General, as it could influence the stock's near-term price movement. If the company surpasses earnings estimates, the stock might experience an upward trend. Conversely, a miss could lead to a decline. The management's discussion during the earnings call will be vital in assessing the sustainability of any immediate price changes and future earnings expectations. As highlighted by Zacks, the consensus estimate suggests that Dollar General is expected to report quarterly earnings of $1.47 per share.

BofA Securities analyst Robert F. Ohmes has reiterated a Buy rating for Dollar General, increasing the price target from $100 to $115. Ohmes forecasts a first-quarter adjusted EPS of $1.40, with a 1% rise in comparable sales. He notes that real-time sales data indicates an acceleration in the quarter, suggesting potential upside for Q1, despite current estimates implying flat trends. This optimism is tempered by challenges such as store remodel activities and labor costs, which may offset profit gains from reduced shrink.

Dollar General's financial ratios provide further insight into its market position. The company's price-to-earnings (P/E) ratio is approximately 18.97, while its price-to-sales ratio stands at about 0.53. The enterprise value to sales ratio is around 0.93, reflecting the company's total valuation in relation to its sales. Additionally, the debt-to-equity ratio is 2.36, highlighting the company's leverage level. These metrics offer a comprehensive view of Dollar General's financial health as it approaches its earnings release.