Dollar Tree Stores Inc. Third Quarter Earnings Sneak Peek

Dollar Tree Stores, Inc. (NASDAQ:DLTR) will unveil its latest earnings on Thursday, November 17, 2011. 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.

Dollar Tree Stores, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 83 cents per share, a rise of 13.7% 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 82 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 83 cents during the last month. Analysts are projecting profit to rise by 23.5% versus last year to $3.99.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 77 cents per share against a mean estimate of profit of 75 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 10.5% in revenue from the year-earlier quarter to $1.58 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

A Look Back: In the second quarter, profit rose 21.7% to $94.9 million (77 cents a share) from $78 million (61 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11.9% to $1.54 billion from $1.38 billion.

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

The company has seen net income rise in three straight quarters. Net income rose 58.8% in the first quarter and 20.4% in the fourth 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 18, 2011 to November 11, 2011, the stock price had risen $13.13 (20%) from $65.54 to $78.67. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 19, 2011 when shares rose for seven-straight days, rising 8.5% (+$5.98) 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 $22.59 (+40.3%) year to date.

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

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