Dollar Tree Earnings: Dials Past Estimates

Dollar Tree Inc. (NASDAQ:DLTR) reported net income above Wall Street’s expectations for the third quarter. Dollar Tree operates discount variety stores in the United States. Its stores offer merchandise at the fixed price of $1.00. The company operates stores under the names of Dollar Tree, Deal$, and Dollar Bills.

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Dollar Tree Inc. Earnings Cheat Sheet

Results: Net income for Dollar Tree Inc. rose to $155.4 million (68 cents per share) vs. $104.5 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 48.7% from the year-earlier quarter.

Revenue: Rose 7.8% to $1.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar Tree Inc. beat the mean analyst estimate of 49 cents per share. Analysts were expecting revenue of $1.7 billion.

Quoting Management: “Sales increased in both basic and variety categories,” said President and CEO Bob Sasser. “Comp store sales were positive every month and we saw sequential improvement from August through October. Operating margin increased significantly and the Company delivered record third quarter earnings per share.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 25.6% and in the first quarter, the figure rose 15%.

Revenue has risen the past four quarters. Revenue increased 10.5% to $1.7 billion in the second quarter. The figure rose 11.5% in the first quarter from the year earlier and climbed 12.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 4 cents in the second quarter and by one cent in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1 per share to 98 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is now $2.48 per share, down from $2.52 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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