Dollar Tree Trips Over Bottom Line on Earnings

By Chris Lange Updated Jan 13, 4:50PM EST · Published Nov 24, 8:42AM EST

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Dollar Tree Trips Over Bottom Line on Earnings — © Thinkstock

Dollar Tree, Inc. (NASDAQ: DLTR) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company had $0.49 in earnings per share (EPS) on $4.95 billion in revenue compared to consensus estimates from Thomson Reuters that call for $0.53 in EPS on $4.84 billion in revenue. The same period from the previous year had $0.69 in EPS on $2.10 billion in revenue.

In terms of guidance the company expects to have EPS in the range of $2.32 to $2.51 and net sales in the range of $5.32 billion to $5.42 billion for the fourth quarter. The consensus estimates call for $1.14 in EPS on $5.44 billion in revenue.

During the quarter, Dollar Tree opened 204 stores, expanded or relocated 63 stores and closed six stores. Additionally, as part of its re-banner initiative, the Company closed 167 Family Dollar stores and opened 143 Dollar Tree stores during the quarter.

Bob Sasser, CEO of Dollar Tree, commented on earnings:

I am pleased with our company’s third quarter performance. Dollar Tree delivered same-store sales of 2.1%, which represented our 31st consecutive quarter of positive same-store sales. This was against a 5.9% comp from the prior year, our strongest quarter of 2014. While not included in our comp calculation, Family Dollar delivered positive same-store sales of low to mid-single-digits, as a percent, each month during the quarter.

He added:

Our integration project is on schedule and we are on track to achieve our stated synergy goals. Today, I am even more enthusiastic about the long-term opportunity this merger provides for our customers, our suppliers, our associates, and our shareholders. As we entered the fourth quarter, both Dollar Tree and Family Dollar stores were well-stocked and prepared for the upcoming holiday season.

On the books the company had $1.11 billion in cash, equivalents, and short-term investments compared to $407.6 million in the same period from the previous year.

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Shares of Dollar Tree closed Monday up 1.7% at $69.55, with a consensus analyst price target of $80.44 and a 52-week trading range of $60.31 to $84.22. Following the release of the earnings report, the stock was down 1.8% at $68.30 in early trading indications Tuesday.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.