Dollar Tree Earnings: Fifth Straight Quarters of Double-Digit Growth

Dollar Tree Inc. (NASDAQ:DLTR) reported its results for the first 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for Dollar Tree Inc. rose to $116.1 million ($1 per share) vs. $101 million (82 cents per share) in the same quarter a year earlier. This marks a rise of 15% from the year-earlier quarter.

Revenue: Rose 11.5% to $1.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar Tree Inc. beat the mean analyst estimate of 98 cents per share. Analysts were expecting revenue of $1.7 billion.

Quoting Management: “I am pleased with the first quarter results as both sales and earnings exceeded the high end of our guidance,” said President and CEO Bob Sasser. “The top performing categories for the quarter included Home products; Food, snacks and beverage; Health care products; Party supplies; Household cleaning supplies; and Seasonal merchandise. Inventory turns increased in the first quarter and we entered the second quarter in stock and well prepared, with our shelves full of the right product for our customers.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.5%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 14.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 15.6% and in the third quarter of the last fiscal year, the figure rose 12.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the fourth quarter of the last fiscal year, by 4 cents in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 95 cents per share, up from 94 cents ninety days ago. The average estimate for the fiscal year is $4.94 per share, a rise from $4.79 ninety days ago.

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

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