Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) will be announcing earnings results tomorrow before market open. Here’s what to expect.
Dollar Tree missed analysts’ revenue expectations by 39.3% last quarter, reporting revenues of $5 billion, down 42.1% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
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 40.6% year on year to $4.53 billion, a reversal from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.21 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 five times over the last two years.
Looking at Dollar Tree’s peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 1.4%, and BJ's reported revenues up 4.8%, falling short of estimates by 0.6%. Sprouts’s stock price was unchanged after the resultsand BJ’s price followed a similar reaction.
Read our full analysis of Sprouts’s results here and BJ’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 10.1% on average over the last month. Dollar Tree is up 9% during the same time and is heading into earnings with an average analyst price target of $88.92 (compared to the current share price of $91.50).
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