Dollar General Analysts Boost Their Forecasts After Upbeat Q4 Earnings

Dollar General Corp DG posted better-than-expected earnings for its fourth quarter on Thursday.

The company reported a four-quarter FY23 sales decline of 3.4% year-on-year to $9.858 billion, beating the analyst consensus estimate of $9.783 billion. EPS of $1.83 beat the consensus estimate of $1.75, according to data from Benzinga Pro.

Same-store sales increased 0.7% versus last year, by an increase in customer traffic, partially offset by a decrease in average transaction amount.

“With customer traffic growth and market share gains during the quarter, we believe our actions are resonating with customers as they turn to Dollar General for our unique combination of value and convenience,” said CEO Todd Vasos.
Dollar General sees FY24 EPS of $6.80 – $7.55 versus an estimate of $7.55. The company expects net sales growth of 6% – 6.7% and same-store sales growth of 2% – 2.7%.

Dollar General reiterated its plans to execute approximately 2,385 real estate projects in fiscal year 2024, including approximately 800 new store openings, 1,500 remodels, and 85 store relocations. For the 13-week quarter ending May 3, 2024, the company currently expects a same-store sales increase of 1.5% to 2.0% and EPS of $1.50-$1.60 (consensus $1.89).

Dollar General shares fell 5.1% to close at $150.06 on Thursday.

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

• Telsey Advisory Group raised the price target on Dollar General from $155 to $170. Telsey Advisory Group upgraded the stock from Market Perform to Outperform.
• Wells Fargo boosted the price target on Dollar General from $125 to $155. Wells Fargo analyst Edward Kelly maintained an Equal-Weight rating.

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