Dollar Tree (DLTR) Tops Q3 EPS by 11c, Beats on Revenues; Boosts FY EPS/Revenue Guidance

Dollar Tree (NASDAQ: DLTR) reported Q3 EPS of $1.01, $0.11 better than the analyst estimate of $0.90. Revenue for the quarter came in at $5.32 billion versus the consensus estimate of $5.28 billion.

Company Outlook

The Company estimates consolidated net sales for the fourth quarter of 2017 to range from $6.32 billion to $6.43 billion, based on a low single-digit increase in same-store sales for the combined enterprise. Diluted earnings per share are estimated to be in the range of $1.80 to $1.89.

Consolidated net sales for full-year fiscal 2017 are now expected to range from $22.20 billion to $22.31 billion compared to the Company’s previously expected range of $22.07 billion to $22.28 billion. This estimate is based on a low single-digit increase in same-store sales and 3.7% square footage growth. The Company now anticipates net income per diluted share for full-year fiscal 2017 will range between $4.64 and $4.73, compared to its previous guidance of $4.44 to $4.60. This estimate includes $53.5 million, or $0.14 per diluted share, of receivable impairment charges incurred in 2017. Fiscal 2017 includes a 53rd week. The extra week, in the fourth quarter, is expected to add $400 million to $430 million to sales and $0.19 to $0.22 to diluted earnings per share, both of which are included in the guidance.

Philbin added, "Our stores and teams are well-prepared and energized as we enter the fourth and final quarter of 2017. We are confident in our ability to continue driving positive same-store sales, through meeting our customers’ needs and wants; improving enterprise operating margin; and delivering year-over-year earnings per share growth. We believe we are well-positioned in the most attractive sector in retail and will remain intensely focused on delivering great value and convenience to our growing customer base. Both banners are ready for the holiday season, and we have an experienced leadership team, momentum in our business and a continued focus on this transformational opportunity."

Highlights

• Diluted Earnings per Share Increased 40.3% to $1.01 vs. $0.72 ~
• Enterprise Operating Margin Improved 120 Basis Points to 8.0% ~
• Consolidated Sales Increased 6.3% to $5.32 Billion ~
• Enterprise Same-Store Sales Increased 3.2% ~
• Same-Store Sales by Segment: Dollar Tree +5.0%, Family Dollar +1.5%

GUIDANCE:

Dollar Tree sees FY2017 EPS of $4.64-$4.73, versus the consensus of $4.69. Dollar Tree sees FY2017 revenue of $22.2-22.31 billion, versus the consensus of $22.23 billion.

For earnings history and earnings-related data on Dollar Tree (DLTR) click here.

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