Retail

What to Expect When Dollar Tree Reports Tuesday Morning

Chris Lange

Published: November 25, 2019 1:42 pm

Last Updated: January 30, 2020 12:47 pm

Dollar Tree, Inc. (NASDAQ: DLTR) is set to report its most recent quarterly results before the opening bell on Tuesday. The consensus estimates are calling for $1.13 in earnings per share (EPS) and $5.74 billion in revenue. The same period from last year had $1.18 in EPS and $5.54 billion in revenue.

Earlier this month, the U.S. Food and Drug Administration (FDA) sent a letter to Gary Philbin, CEO of Greenbrier International, which does business as Dollar Tree, warning the company of “serious violations of federal law” for receiving drugs produced by foreign manufacturers that do not meet good manufacturing processes. The over-the-counter products are being sold at Dollar Tree and Dollar General stores under the Assured Brand label. The FDA seems to be poised to drop the hammer on Dollar Tree, and we potentially look for an update with this report.

In the fiscal second quarter, Dollar Tree reported that enterprise same-store sales increased 2.4% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.4% and 2.4% in the Family Dollar segment.

At that time, Dollar Tree issued guidance for the fiscal full year. The company said that it expects to see EPS in the range of $4.90 to $5.11 and revenue between $23.57 billion and $23.79 billion. Consensus estimates are calling for $5.06 in EPS and $23.7 billion in revenue.

Excluding Monday’s move, Dollar Tree has underperformed the broad markets with the stock up about 21% year to date. In the past 52 weeks, the stock I up closer to 33%.

A few analysts weighed in on Dollar Tree ahead of the report:

• Wells Fargo has an Outperform rating with a $140 price target.
• Credit Suisse has an Outperform rating with a $125 price target.
• UBS Group has a Buy rating with a $120 price target.
• Citigroup has a Hold rating with a $120 price target.
• JPMorgan has an Overweight rating with a $125 price target.

Shares of Dollar Tree were last seen up about 3% at $112.12, with a 52-week range of $81.02 to $119.71. The consensus analyst price target is $116.56.