Join        Login             Stock Quote

Dollar Tree (DLTR) Gains After Upbeat 3Q Earnings, Lifts 2012 Profit View

 November 15, 2012 09:10 AM

(By Balaseshan) Dollar Tree Inc. (NASDAQ: DLTR) shares gained 4.34% in premarket on Thursday after posting upbeat quarterly earnings and the operator of discount variety stores raised full-year guidance above market expectations.

Earnings for the third quarter were $155.4 million or $0.68 per share, up from $104.5 million or $0.43 per share last year. Excluding one-time gain relating to sale of its ownership interest in Ollie's Holdings Inc., earnings per share were $0.51 for the latest quarter.

Sales grew 7.8% to $1.72 billion. Comparable store sales increased 1.6% for the latest quarter.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.49 per share on revenue of $1.73 billion for the third quarter.

[Related -Family Dollar Stores, Inc. (NYSE:FDO) Q1 Earnings Preview: What To Watch?]

Operating margin increased 40 basis points for the quarter to 10.7%.

During the third quarter, Dollar Tree opened 111 stores, expanded or relocated 16 stores, and closed 4 stores. Retail selling square footage increased 7.1% to 40.1 million square feet.

Looking ahead into the fourth quarter, the company expects earnings of $0.97 to $1.02 per share and sales of $2.20 billion to $2.26 billion, while Street analysts predict profit of $0.98 per share on revenue of $2.24 billion. The forecast also assumes flat- to- a low-single digit positive comparable store sales.

For the full year, the company now expects earnings of $2.65 to $2.70 per share and sales of $7.35 billion to $7.41 billion, while Street analysts predict profit of $2.48 per share on revenue of $7.39 billion.

[Related -Dollar Tree, Inc. (DLTR): Healthy Cash Flow, Superior Returns Should Allay Investor Concerns]

Previously, the company had guided profit of $2.45 to $2.54 per share and sales of $7.36 billion to $7.45 billion for the fiscal 2012.

In addition, 2012 will include a 53rd week that will be recorded in the fourth quarter 2012. The extra week is expected to add $120 million to $130 million to sales in the fourth quarter 2012 and $0.07 to $0.08 earnings per share, both of which are included in guidance.

DLTR closed Wednesday's regular session at $37.76. The stock has been trading between $36.04 and $56.81 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.