📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Dollar General stock hit with several downgrades after weak results, guidance

EditorAmbhini Aishwarya
Published 09/01/2023, 08:00 AM
© Reuters.  Dollar General (DG) stock hit with several downgrades after weak results, guidance
DG
-

At least six Dollar General (NYSE:DG) analysts downgraded the stock after the retailer reported weaker-than-expected results and lowered its full-year guidance.

DG shares fell 12.2% yesterday and are down a further 1.3% today.

In the second quarter results, Dollar General reported comparable sales decreased by 0.1%, falling short of the average analyst estimate of a 0.9% increase and a significant contrast from the previous year's growth of 4.6%.

EPS for the quarter was $2.13 on net sales of $9.80 billion, while analysts were looking for revenue of $9.91B.

“We were disappointed by the 2Q23 results—reflecting soft sales, poor execution, and ongoing investments—and even more so by the softer comp and profit outlook for 2H23, which we believe is likely to continue in 1H24,” Telsey Advisory Group analysts wrote in a statement.

“We are moving to the sidelines until we see stabilization of operating performance,” they added after downgrading the rating to Market Perform.

Raymond James analysts cut the rating to an Outperform from a Strong Buy following F2Q23 earnings.

“While we are disappointed with the recent guidance reductions, we do not think Dollar General is a permanently broken business and believe the cost pressures hindering earnings will eventually abate and the company will return to more consistent earnings growth. That said, there still is risk that performance may not have reached the bottom,” they wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.