KeyCorp Has Optimistic Outlook of Dollar General Q3 Earnings

Dollar General Corporation (NYSE:DG) – Research analysts at KeyCorp raised their Q3 2027 EPS estimates for shares of Dollar General in a research report issued to clients and investors on Tuesday, June 2nd. KeyCorp analyst B. Thomas now expects that the company will earn $1.40 per share for the quarter, up from their previous estimate of $1.39. KeyCorp has a “Sector Weight” rating on the stock. The consensus estimate for Dollar General’s current full-year earnings is $7.28 per share. KeyCorp also issued estimates for Dollar General’s Q4 2027 earnings at $2.00 EPS.

Dollar General (NYSE:DG) last issued its quarterly earnings results on Tuesday, June 2nd. The company reported $2.00 EPS for the quarter, beating the consensus estimate of $1.89 by $0.11. The company had revenue of $10.79 billion for the quarter, compared to the consensus estimate 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 prior year, the firm posted $1.78 EPS. Dollar General has set its FY 2026 guidance at 7.200-7.450 EPS.

Other equities research analysts have also recently issued reports about the stock. BNP Paribas Exane lowered their price objective on shares of Dollar General from $144.00 to $113.00 and set a “neutral” rating for the company in a research report on Wednesday. Piper Sandler lowered their price objective on shares of Dollar General from $133.00 to $118.00 and set a “neutral” rating for the company in a research report on Wednesday. UBS Group reissued a “buy” rating on shares of Dollar General in a research report on Wednesday, May 27th. Jefferies Financial Group lowered their price objective on shares of Dollar General from $155.00 to $135.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Rothschild & Co Redburn lowered their price objective on shares of Dollar General from $111.00 to $90.00 and set a “sell” rating for the company in a research report on Monday, May 18th. Eleven investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $134.15.

Dollar General Stock Performance

Shares of NYSE:DG opened at $105.10 on Thursday. The company has a market capitalization of $23.15 billion, a price-to-earnings ratio of 14.87, a PEG ratio of 1.76 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 50-day moving average is $114.46 and its 200 day moving average is $128.74. The company has a current ratio of 1.17, a quick ratio of 0.22 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. Stockholders of record on Tuesday, July 7th will be given a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, July 7th. Dollar General’s dividend payout ratio is presently 34.45%.

Institutional Investors Weigh In On Dollar General

Several hedge funds have recently modified their holdings of the business. DV Trading LLC purchased a new stake in shares of Dollar General in the 1st quarter worth approximately $249,000. NewEdge Advisors LLC lifted its position in shares of Dollar General by 14.3% in the 1st quarter. NewEdge Advisors LLC now owns 71,721 shares of the company’s stock worth $8,515,000 after purchasing an additional 8,996 shares during the period. Keel Point LLC purchased a new stake in shares of Dollar General in the 1st quarter worth approximately $393,000. Summitry LLC lifted its position in shares of Dollar General by 5.5% in the 1st quarter. Summitry LLC now owns 8,654 shares of the company’s stock worth $1,027,000 after purchasing an additional 454 shares during the period. Finally, Vestor Capital LLC lifted its position in shares of Dollar General by 663.8% in the 1st quarter. Vestor Capital LLC now owns 28,979 shares of the company’s stock worth $3,441,000 after purchasing an additional 25,185 shares during the period. Hedge funds and other institutional investors own 91.77% of the company’s stock.

Dollar General News Summary

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

• Positive Sentiment: Dollar General beat Q1 earnings estimates with EPS of $2.00 versus $1.89 expected, while same-store sales rose 2.0% and net sales increased 3.4%, showing solid customer traffic and margin improvement.
• Positive Sentiment: The company raised its fiscal 2026 profit outlook to $7.20-$7.45 per share and reaffirmed sales growth expectations, signaling management confidence in continued operational improvement and demand for value-priced essentials.
• Positive Sentiment: Several analysts maintained bullish or supportive views after the report, including Jefferies and UBS, which helps offset some of the more cautious rating actions.
• Neutral Sentiment: Most analyst firms trimmed price targets, including Citigroup, Goldman Sachs, BNP Paribas Exane, HSBC, Evercore and Guggenheim, but largely kept neutral/hold-style ratings, suggesting valuation concern more than deteriorating fundamentals.
• Neutral Sentiment: Dollar General also declared a quarterly dividend and highlighted store expansion and inventory discipline, reinforcing a stable longer-term operating strategy.
• Negative Sentiment: The company noted that core customers are under pressure from higher gas prices and reduced SNAP benefits, especially in rural areas, which could weigh on spending patterns later in the year.
• Negative Sentiment: Some commentary pointed to a slight revenue miss and ongoing concerns about the turnaround pace, which may limit the stock’s upside near term despite the earnings beat.

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.