Discount treasure-hunt retailer Dollar Tree (NASDAQ: DLTR) will be reporting results tomorrow before the bell. Here’s what to look for.
Dollar Tree beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $7.57 billion, up 3.5% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but EPS guidance for next quarter missing analysts’ expectations.
Is Dollar Tree a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dollar Tree’s revenue to decline 4.7% year on year to $8.24 billion, a reversal from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 per share.
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 four 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 4.5%, meeting analysts’ expectations, and Sprouts reported revenues up 17.5%, topping estimates by 1.7%. Dollar General traded up 5.7% following the results while Sprouts was down 15.6%.
Read our full analysis of Dollar General’s results here and Sprouts’s results here.
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