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Dollar Tree (DLTR) Misses on Q1 Earnings & Sales Estimates

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Dollar Tree Inc. (DLTR - Free Report) , one of the leading operators of discount stores, delivered first-quarter fiscal 2018 adjusted earnings of $1.19 per share that lagged the Zacks Consensus Estimate of $1.23. However, earnings grew 21.4% year over year.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2019 has witnessed an uptrend in the last seven days. If we look at Dollar Tree’s performance in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 6.1%.

Dollar Tree, Inc. Price, Consensus and EPS Surprise

Dollar Tree, Inc. Price, Consensus and EPS Surprise | Dollar Tree, Inc. Quote

Revenues: Dollar Tree generated net sales of $5,553.7 million that advanced 5% year over year but came below the Zacks Consensus Estimate of $5,571 million. Enterprise comparable-store sales (comps) improved 1.4%. Further, comps for Dollar Tree rose 4% (on a constant currency basis) while comps at Family Dollar fell 1.1%.

Outlook: Management updated guidance for second-quarter and fiscal 2018. It now forecasts consolidated net sales for the second quarter in the band of $5.47-$5.57 billion, with low single-digits comps growth. Earnings are envisioned in the range of $1.07-$1.16 per share.

For fiscal 2018, it projects consolidated net sales in the range of $22.73-$23.05 billion, with low single-digit comps increase and 3.7% rise in square footage. Further, earnings per share for the fiscal are envisioned in the $4.80-$5.10 range.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.18 and for the fiscal year, it stands at $5.66.

Zacks Rank: Currently, Dollar Tree carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on Dollar Tree’s earnings report!

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