Earnings To Watch: Dollar Tree (DLTR) Reports Q1 Results Tomorrow

Jabin Bastian /
2024/06/04 3:01 am EDT

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

Dollar Tree met analysts' revenue expectations last quarter, reporting revenues of $8.64 billion, up 11.9% year on year. It was a weaker quarter for the company, with a miss of analysts' earnings estimates and underwhelming earnings guidance for the full year.

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 grow 4.7% year on year to $7.67 billion, slowing from the 6.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.

Dollar Tree Total Revenue

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 three 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. Dollar General delivered year-on-year revenue growth of 6.1%, meeting analysts' expectations, and Sprouts reported revenues up 8.7%, topping estimates by 1.9%. Dollar General traded down 1.9% following the results while Sprouts was up 12%.

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 11.5% on average over the last month. Dollar Tree's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $148.4 (compared to the current share price of $120.98).

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