Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) will be announcing earnings results this Wednesday before market open. Here’s what to expect.
Dollar Tree beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $4.64 billion, up 11.3% year on year. It was a very strong quarter for the company, with revenue 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.
This quarter, analysts are expecting Dollar Tree’s revenue to decline 39.3% year on year to $4.48 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.
The majority of analysts covering the company have 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 five 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. Dollar General delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.5%, and Sprouts reported revenues up 17.3%, topping estimates by 2.3%. Dollar General traded down 2.3% following the results while Sprouts was also down 4.1%.
Read our full analysis of Dollar General’s results here and Sprouts’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 6.8% on average over the last month. Dollar Tree is down 5.6% during the same time and is heading into earnings with an average analyst price target of $111.74 (compared to the current share price of $109.26).
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