Dollar Tree (DLTR) Reports Earnings Tomorrow. What To Expect

Radek Strnad /
2023/11/28 2:01 am EST

Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) will be announcing earnings results tomorrow before market hours. Here's what to look for.

Last quarter Dollar Tree reported revenues of $7.33 billion, up 8.2% year on year, beating analyst revenue expectations by 1.7%. It was a mixed quarter for the company, with revenue  topping analysts' expectations this quarter, driven by strong same-store sales growth. In addition, Dollar Tree lifted its full-year revenue guidance. That really stood out as a positive in these results. On the other hand, its operating margin was much lower than expected.

Is Dollar Tree buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Dollar Tree's revenue to grow 6.9% year on year to $7.42 billion, slowing down from the 8.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 per share.

Dollar Tree Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Dollar Tree's peers in the non-discretionary retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Sprouts delivered top-line growth of 7.7% year on year, beating analyst estimates by 2% and Grocery Outlet reported revenues up 9.3% year on year, missing analyst estimates by 0.4%. Sprouts traded up 1.5% on the results, and Grocery Outlet was down 7.1%.

Read our full analysis of Sprouts's results here and Grocery Outlet's results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with the stocks up on average 10.3% over the last month. Dollar Tree is up 6.3% during the same time, and is heading into the earnings with analyst price target of $144.7, compared to share price of $116.7.

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The author has no position in any of the stocks mentioned.