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Dollar Tree (DLTR) Stock Rallies on Q2 Earnings & Sales Beat

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Dollar Tree Inc. (DLTR - Free Report) , one of the leading operators of discount stores, delivered second-quarter fiscal 2017 adjusted earnings of 99 cents per share, ahead of the Zacks Consensus Estimate of 87 cents and up 37.5% year-over-year.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has been stable in the last 30 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 1.5%.

Dollar Tree, Inc. Price, Consensus and EPS Surprise

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

Revenues: Dollar Tree generated total revenue of $5,281.2 million that rose 5.7% year over year, and topped the Zacks Consensus Estimate of $5,230 million. Total company comparable-store sales (comps) improved 2.4%, with comps for Dollar Tree up 3.9% and Family Dollar up 1%.

Outlook: Management now forecasts net sales for fiscal 2017 (which will contain an additional week) in the band of $22.07-$22.28 billion, compared with the old projection of $21.95-$22.25 billion. The company’s third quarter sales are projected in the band of $5.20-$5.29 billion. Comps for both periods are expected to increase in the low single-digit range.

Earnings per share for fiscal 2017 are now expected to be in the range of $4.44-$4.60, which includes a receivable impairment charge of 14 cents recorded in first-half fiscal 2017. Earlier, management projected earnings to lie in a band of $4.17-$4.43 per share, in fiscal 2017. For the third quarter, the company expects earnings to lie in the range of 83-90 cents.

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.

Stock Movement: Shares rose nearly 9% during pre-market trading hours following the robust second-quarter fiscal 2017 results and the raised fiscal 2017 guidance.

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

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