Dollar Tree's Earnings Beat Last Year's by 31%

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Dollar Tree (NAS: DLTR) reported earnings on Aug. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 28 (Q2), Dollar Tree met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.


Gross margins were steady, operating margins increased, net margins grew.

Revenue details
Dollar Tree booked revenue of $1.70 billion. The 23 analysts polled by S&P Capital IQ predicted a top line of $1.71 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.54 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.51. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. GAAP EPS of $0.51 for Q2 were 31% higher than the prior-year quarter's $0.39 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.2%, about the same as the prior-year quarter. Operating margin was 10.8%, 80 basis points better than the prior-year quarter. Net margin was 7.0%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.77 billion. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $7.47 billion. The average EPS estimate is $2.48.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 453 members out of 497 rating the stock outperform, and 44 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Dollar Tree a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dollar Tree is outperform, with an average price target of $52.74.

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The article Dollar Tree's Earnings Beat Last Year's by 31% originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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