Dollar Tree Stores, Inc. Second Quarter Earnings Sneak Peek

Dollar Tree Stores, Inc. (NASDAQ:DLTR) will unveil its latest earnings on Thursday, August 18, 2011. Dollar Tree, Inc. 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.

Dollar Tree Stores, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 75 cents per share, a rise of 23% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 73 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 75 cents during the last month. For the year, analysts are projecting profit of $3.89 per share, a rise of 20.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting net income of 82 cents per share against a mean estimate of profit of 75 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.55 billion in revenue this quarter, a rise of 12.3% from the year ago quarter. Analysts are forecasting total revenue of $6.59 billion for the year, a rise of 12.1% from last year’s revenue of $5.88 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 13%, with the biggest boost coming in the most recent 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% while it rose 20.4% in the fourth quarter of the last fiscal year and 36.7% in the third quarter of the last fiscal year.

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), Big Lots, Inc. (NYSE:BIG), Duckwall-ALCO Stores, Inc (NASDAQ:DUCK).

Stock Price Performance: During August 8, 2011 to August 12, 2011, the stock price had risen $5.80 (9.5%) from $60.95 to $66.75. The stock price saw one of its best stretches over the last year between September 9, 2010 and September 20, 2010 when shares rose for eight-straight days, rising 5.3% (+$2.43) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 3.8% (-$2.66) over that span. Shares are up $10.67 (+19%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.