Dollar Tree, Inc. (NASDAQ: DLTR) reported its fiscal third-quarter financial results on Tuesday before the markets opened. Overall the continued progress in building the foundation of a consolidated Dollar Tree and Family Dollar has been effective in driving earnings for this quarter. It also helps that guidance took a noticeable uptick looking ahead to the holiday season.
The company said that it had $0.81 in earnings per share (EPS) and $5.0 billion in revenue. The consensus estimates from Thomson Reuters called for $0.78 in EPS and $5.08 billion in revenue. The same period from last year had $0.49 in EPS and $4.95 billion in revenue.
Same-store sales increased 1.7%, on a constant currency basis, compared to a 2.1% increase in the prior-year period. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 1.8%. The same-store sales growth, representing the company’s 35th consecutive quarter of positive same-store sales, was driven by increases in comparable customer count and average ticket.
In terms of the guidance for the fiscal fourth-quarter, the company expects to see EPS in the range of $1.24 to $1.33 (up from the previous level of $1.21 to $1.30) and net sales in the range of $5.59 billion to $5.69 billion, based on low single-digit increases in same-store sales for the Dollar Tree and Family Dollar segments. The consensus estimates are calling for $1.29 in EPS and $5.63 billion in revenue.
On the books, cash, cash equivalents, and short-term investments totaled $737.8 million at the end of the quarter, versus $740.1 million at the end of the previous fiscal year.
Bob Sasser, CEO of Dollar Tree, commented:
I am proud of our team’s achievements in our third quarter. Our results demonstrated a solid performance in our Dollar Tree segment, continued meaningful progress in our integration of Family Dollar, and our ability to refinance and pre-pay a portion of our outstanding debt in order to reduce future interest costs. After adding back $0.09 per share of expenses related to our debt refinancing, our operating performance of $0.81 per diluted share was near the top end of our third quarter EPS guidance range of $0.76 to $0.82.
Shares of Dollar Tree closed Monday at $81.99, with a consensus analyst price target of $91.25 and a 52-week trading range of $68.51 to $99.93. Following the release of the earnings report, the stock was up 8.5% at $89.00 in early trading indications Tuesday.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
