Dollar Tree Results Beat Estimates, Guidance a Little Soft

supermarketDollar Tree Inc. (NASDAQ: DLTR) reported fourth-quarter and full-year results before markets opened this morning.

The discount retailer reported adjusted diluted earnings per share (EPS) for the quarter of $1.01 on revenues of $2.25 billion. In the same period a year ago, it reported EPS of $0.80 on revenue of $1.95 billion. This morning's results also compare to the Thomson Reuters consensus estimates for EPS of $0.99 and $2.23 billion in revenue.

For the fiscal year, Dollar Tree posted EPS of $2.68 on revenues of $7.39 billion, better than the consensus estimates for EPS of $2.50 and revenues of $7.35 billion.

The company's CEO said:

I am pleased with the growth of Dollar Tree's sales and earnings in the fourth quarter and for the year of 2012. On top of a very strong fourth quarter performance in 2011, average basket size increased and customers responded this year in record numbers.

Same-store sales for the quarter rose 2.4%, on top of a 7.3% increase in the fourth quarter a year ago. The retailer is right to be happy about this year's gain. For the full year, same-store sales rose 3.4% on top of a 6% gain in 2011.

The one down note is that Dollar Tree's fiscal year included 53 weeks in 2012, compared with 52 in 2011. Backing out the 53rd week and a one-time gain for the sale of the company's interest in another firm, Dollar Tree's full-year EPS totaled $2.44 a share.

The company guided first-quarter EPS at $0.53 to $0.58 and sales at $1.84 billion to $1.89 billion. For the full year, the company forecast EPS in the range of $2.54 to $2.74 on revenues of $7.79 billion to $7.97 billion. The consensus estimates for the first quarter call for EPS of $0.58 on revenues of $1.87 billion. For the full year, the consensus EPS estimate is $2.81 on revenues of $7.9 billion.

Dollar Tree's shares are up 2.2% in premarket trading this morning, at $42.00 in a 52-week range of $37.12 to $56.81. Thomson Reuters had a consensus analyst price target of around $47.65 before today's results were announced.


Filed under: 24/7 Wall St. Wire, Earnings, Retail, Services Tagged: DLTR
Read Full Story

Markets

DJIA 20,926.97 32.14 0.15%
NASDAQ 6,132.67 -0.95 -0.02%
S&P 500 2,398.04 4.02 0.17%
NIKKEI 225 19,613.28 -65.00 -0.33%
HANG SENG 25,403.15 11.81 0.05%
DAX 12,659.15 39.69 0.31%
USD (per EUR) 1.12 0.00 -0.42%
USD (per CHF) 0.97 0.00 0.16%
JPY (per USD) 111.66 0.78 0.70%
GBP (per USD) 1.30 0.00 -0.11%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.