Dollar Tree’s Stock Surges on Its 3Q16 Earnings Beat


Nov. 24 2016, Published 1:29 p.m. ET

Dollar Tree’s 3Q16 earnings overview

Dollar Tree (DLTR), a leading operator of discount stores in the United States, reported its results for 3Q16 on November 22, 2016.

DLTR’s earnings per share (or EPS) stood at $0.81, topping analysts’ consensus estimate by $0.03. The company’s revenue rose 1.1% YoY (year-over-year) to $5 billion but fell short of analysts’ consensus estimate by $80 million.

Dollar Tree’s results were well received by the market. Its stock price rose 8.6% after its results and closed at $88.68 on November 22.

DLTR is currently sitting at a YTD (year-to-date) rise of 15.1%. Competitors Dollar General (DG), TJX Companies (TJX), and Price Smart (PSMT) have also done well in the market. The companies have recorded YTD rises of 11%, 12%, and 10.2%, respectively, as of November 23.

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About Dollar Tree

Dollar Tree operates through the Dollar Tree and Family Dollar brands. Its Dollar Tree stores offer merchandise, everyday consumables, food, and health and beauty care products for a fixed price of $1.

Its Family Dollar segment offers food, tobacco, home products, apparel and accessories, and personal electronics.

Investors looking for exposure to Dollar Tree through ETFs can consider the iShares Morningstar Mid-Cap Growth ETF (JKH), which invests 1.4% of its total holdings in the company.

In this series…

In this series, we’ll take a look at Dollar Tree’s 3Q16 results. We’ll discuss the company’s key revenue drivers and profitability in the quarter.

We’ll also briefly touch upon the company’s current valuation, its stock market performance, and Wall Street analysts’ recommendations for its stock.


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