Dollar Tree, Inc. Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

Dollar Tree, Inc. (NASDAQ:DLTR) reported its results for the second quarter. Dollar Tree, Inc. operates discount variety stores in the United States.

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Dollar Tree Earnings Cheat Sheet for the Second Quarter

Results: Net income for Dollar Tree, Inc. rose to $94.9 million (77 cents per share) vs. $78 million (61 cents per share) in the same quarter a year earlier. This marks a rise of 21.7% from the year earlier quarter.

Revenue: Rose 11.9% to $1.54 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DLTR beat the mean analyst estimate of 75 cents per share. Analysts were expecting revenue of $1.55 billion.

Quoting Management: Earnings per diluted share for the second quarter were $0.77, an increase of 26.2% compared to the $0.61 earnings per diluted share reported for the quarter ended July 31, 2010. “I am pleased with our second quarter performance as sales, earnings and operating margins continue to expand,” President and CEO Bob Sasser said. “Increases in customer traffic and average ticket drove our sales growth, which was strongest in the latter half of the quarter. Our operating margin continued to improve even with significantly higher energy prices throughout the quarter relative to last year. Earnings continue to grow and our stores are executing at a high level. We transitioned quickly from “Summer Fun” to back-to-school and are ready for the fall selling season.”

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 12.8%, with the biggest boost coming in the first quarter when revenue rose 14.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 58.8% and in the fourth quarter of the last fiscal year, the figure rose 20.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 11 cents in the third quarter of the last fiscal year.

The company’s cost of sales rose 11.8% from a year earlier. Last quarter, cost of sales was 64.8% of revenue, similar to a year earlier.

Competitors to Watch: Dollar General Corp. (NYSE:DG), Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Wal-Mart Stores, Inc. (NYSE:WMT), Gordmans Stores, Inc. (NASDAQ:GMAN), Walgreens (NYSE:WAG), CVS (NYSE:CVS), Big Lots, Inc. (NYSE:BIG), Duckwall-ALCO Stores, Inc (NASDAQ:DUCK).

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(Source: Xignite Financials)