Discount treasure-hunt retailer Dollar Tree (NASDAQ: DLTR) will be reporting earnings this Monday before market open. Here’s what you need to know.
Dollar Tree beat analysts’ revenue expectations last quarter, reporting revenues of $4.75 billion, up 9.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance beating analysts’ expectations.
Is Dollar Tree a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dollar Tree’s revenue to grow 9.3% year on year, a reversal from the 42.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dollar Tree has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Dollar Tree’s peers in the non-discretionary retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Dollar General delivered year-on-year revenue growth of 5.9%, beating analysts’ expectations by 0.9%, and Target reported a revenue decline of 1.5%, in line with consensus estimates. Dollar General traded down 9% following the results while Target was up 6.1%.
Read our full analysis of Dollar General’s results here and Target’s results here.
While some of the non-discretionary retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 10.2% on average over the last month. Dollar Tree is down 14.5% during the same time and is heading into earnings with an average analyst price target of $126.30 (compared to the current share price of $107.74).
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