Can DG's Q3 2025 EPS growth sustain in future quarters?
3/31/2025 03:14pm
**Dollar General's (DG) Q3 2025 EPS growth may not sustain in future quarters** based on several factors:
1. **Significant Net Income Decline**: DG experienced a substantial decline in net income, with a year-over-year growth rate of -52.41% as of the end of 2025. This indicates a challenging period for the company, which may impact its future earnings.
|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|DG|DG.N|Dollar General|2025 Q1|-29.367976981997746|3.63317E8|169|
|DG|DG.N|Dollar General|2025 Q2|-20.187272707882304|3.7419E8|169|
|DG|DG.N|Dollar General|2025 Q3|-28.85725042172556|1.96529E8|169|
|DG|DG.N|Dollar General|2025 Q4|-52.41144512497107|1.91217E8|169|
|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|DG|DG.N|Dollar General|2025 Q1|6.113660183550341|9.914021E9|169|
|DG|DG.N|Dollar General|2025 Q2|4.227974146251483|1.0210361E10|169|
|DG|DG.N|Dollar General|2025 Q3|5.047883853262227|1.0183428E10|169|
|DG|DG.N|Dollar General|2025 Q4|4.523846088771593|1.0304498E10|169|
2. **Low Operating Margin**: The operating margin for DG was at 3.55% as of December 31, 2024. Such a low margin suggests that DG is operating close to its breakeven point, leaving little room for error or unexpected expenses, which could negatively affect future earnings.
3. **Interest and Tax Expenses**: DG had interest expenses of $37.08 million as of December 31, 2024. While not directly related to EPS, these expenses can impact net income, which in turn affects EPS. Additionally, the company's income tax expense could also fluctuate, further influencing EPS growth.
|code|Ticker|Name|Date|Operating Profit Margin|Interest Expenses|Income Taxes|market_code|
|---|---|---|---|---|---|---|---|
|DG|DG.N|Dollar General|2025 Q1|4.777788951627195|7.2433E7|1.10354E8|169|
|DG|DG.N|Dollar General|2025 Q2||6.813E7|1.07642E8|169|
|DG|DG.N|Dollar General|2025 Q3|3.997174325693608|6.7849E7|5.9424E7|169|
|DG|DG.N|Dollar General|2025 Q4|3.545117406279889||3.7081E7|169|
In conclusion, DG's Q3 2025 EPS growth is unlikely to sustain in the future due to the company's current financial performance indicators. The significant net income decline, low operating margin, and interest and tax expenses all point to a challenging outlook for DG's earnings in the near term.