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Dollar Tree’s 4Q16 Results: Revenue and Profits

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Dollar Tree’s 4Q16 results overview

Dollar Tree (DLTR) reported results for 4Q16 on March 1, 2016. The results relate to the three-month and twelve-month periods ending January 28, 2017.

The company reported better-than-expected quarterly sales and earnings during 4Q16. Its EPS (earnings per share) rose 35% YoY (year-over-year) to $1.36, topping the consensus by $0.04. Total revenues rose 5% YoY to $5.6 billion—$15 million more than the average analyst estimate.

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Valuations

Dollar Tree (DLTR) is currently trading at a one-year forward PE (price-to-earnings) ratio of 17.3x. It has now touched the lowest level of 52-week PE range.

However, the retailer still continues to trade at a premium to Dollar General (DG), which is trading at 16x. Price Smart (PSMT) and TJX Companies (TJX) are, however, more expensive, trading at 27x and 20x, respectively.

About Dollar Tree

Founded in 1986, Dollar Tree operates around 14,000 discount stores under the Dollar Tree and Family Dollar brands in the US and Canada.

Dollar Tree stores offer merchandise, everyday consumables, food, and health and beauty care products for a fixed price of $1. The Dollar Tree stores offer merchandise, everyday consumables, food, and health and beauty care products for a fixed price of $1. By comparison, the 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 1.2% of its total holdings in the company.

What is the series all about?

This series will serve as an overview of Dollar Tree’s 4Q16 and fiscal 2016 results. Specifically, we’ll discuss the company’s financial performance and analyze key revenue drivers and profitability during that period.

Continue to Part 2 of this series for a look at what happened with the company’s top line in 4Q16.

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