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Key Takeaways from Dollar Tree’s 1Q17 Results

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Dollar Tree’s 1Q17 results

Dollar Tree (DLTR) reported its 1Q17 results on May 25, 2017. The results relate to the quarter ending on April 29, 2017.

Dollar Tree’s top and bottom lines were in line with expectations. Its earnings per share rose 10% YoY (year-over-year) to $0.98 on total sales of $5.3 billion (+4% YoY).

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Valuation summary

Currently, Dollar Tree is trading at a one-year forward price to earnings ratio of 17x—compared to a three-year average of 20x. Dollar General (DG) has similar valuations and trades at 16.2x.

The two companies trade at a discount to variety store peers Price Smart (PSMT) and TJX Companies (TJX), which are valued at 27x and 19x. Mass merchandisers Walmart (WMT) and Costco (COST) also trade higher at 18x and 28x.

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’s in this series?

In this series, we’ll provide an overview of Dollar Tree’s 1Q17 results. We’ll discuss the company’s 1Q17 financial performance, recent stock market performance, current valuation, and Wall Street analysts’ recommendations.

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