Dollar Tree Earnings: Here’s Why Shares are Up Now

Dollar Tree, Inc. (NASDAQ:DLTR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.

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Dollar Tree, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18% to $0.59 in the quarter versus EPS of $0.50 in the year-earlier quarter.

Revenue: Rose 8.26% to $1.87 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar Tree, Inc. reported adjusted EPS income of $0.59 per share. By that measure, the company beat the mean analyst estimate of $0.57. It missed the average revenue estimate of $1.87 billion.

Quoting Management: “I am pleased with the Company’s first quarter performance,” said President and CEO Bob Sasser. “Sales continued to grow, our earnings per share increased by 18% and we achieved the highest first-quarter operating margin in the Company’s history. Our stores are executing at a high level and we are well positioned with great assortments and the best values ever for Memorial Day, Graduation and an exciting summer selling season.”

Key Stats (on next page)…

Revenue decreased 16.91% from $2.25 billion in the previous quarter. EPS decreased 41.58% from $1.01 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.58 to a profit $0.57. For the current year, the average estimate has moved down from a profit of $2.81 to a profit of $2.79 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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