Dollar General Analysts Slash Their Forecasts After Downbeat Q1 Results

Dollar General Corporation DG reported worse-than-expected first-quarter results and cut its FY23 sales growth outlook.

EPS decreased 2.9% to $2.34 and missed the analyst consensus of $2.38. The company reported sales growth of 6.8% year-on-year to $9.34 billion, missing the consensus of $9.46 billion.

The company sees FY23 EPS in the range of an approximate 8% decline to flat, compared to its previous expectation of growth of approximately 4%-6%. The company sees net sales growth in the range of approximately 3.5%-5.0%, compared to its previous expectation of 5.5%-6%.

Dollar General shares dipped 19.5% to close at $161.86 on Thursday.

These analysts made changes to their price targets on Dollar General following earnings announcement.

Piper Sandler cut the price target on Dollar General from $275 to $178. Piper Sandler analyst Peter Keith downgraded the stock from Overweight to Neutral.
Deutsche Bank slashed the price target on Dollar General from $256 to $201. Deutsche Bank analyst Krisztina Katai maintained a Buy rating.
Oppenheimer lowered Dollar General price target from $240 to $200. Oppenheimer analyst Rupesh Parikh maintained an Outperform rating.
B of A Securities cut Dollar General price target from $190 to $155. B of A Securities analyst Robert Ohmes maintained the stock with an Underperform.
Wells Fargo slashed Dollar General price target from $245 to $178. Wells Fargo analyst Edward Kelly maintained the stock with an Overweight.
Raymond James cut Dollar General price target from $255 to $200. Raymond James analyst Bobby Griffin maintained the stock with a Strong Buy.
Credit Suisse lowered Dollar General price target from $220 to $170. Credit Suisse analyst Karen Short maintained the stock with a Neutral.