Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) will be announcing earnings results this Thursday before market open. Here’s what investors should know.
Dollar Tree met analysts’ revenue expectations last quarter, reporting revenues of $4.98 billion, up 7.2% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ gross margin estimates.
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 6.3% year on year, slowing from the 12.3% increase 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 will 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 Q2 results, giving us a hint as to what we can expect. Target delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 1.5%, and BJ's reported revenues up 15.7%, topping estimates by 4.7%. Target traded up 3.8% following the results while BJ's was also up 7.9%.
Read our full analysis of Target’s results here and BJ’s results here.
Investors in the non-discretionary retail segment have had steady hands going into earnings, with share prices flat over the last month. Dollar Tree is up 7.3% during the same time and is heading into earnings with an average analyst price target of $131.68 (compared to the current share price of $134.73).
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