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Dollar Tree to Report 3Q17 Earnings: What to Expect

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Dollar Tree ready to report 3Q17 results

The Chesapeake-based Dollar Tree (DLTR) is slated to release its 3Q17 results on November 21. The results relate to the three-month period ending October 28.

Wall Street has predicted that the discount retailer’s earnings will rise 11% to $0.90 per share on total sales of $5.27 billion (+5.5% YoY). During the second quarter of 2017, the company reported better-than-expected top and bottom lines. In the first quarter, both revenue and earnings fell in line with the consensus.

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About Dollar Tree

Founded in 1986, Dollar Tree is among the United States’ top discount variety store retailers. The company operates around 14,000 discount stores in the United States and Canada under the Dollar Tree and Family Dollar banners.

The Family Dollar stores offer food, tobacco, home products, apparel and accessories, and personal electronics. Dollar Tree stores provide merchandise, everyday consumables, food, health, and beauty products for a fixed price of $1.

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.

Valuations update

Dollar Tree is trading at a one-year forward price-to-earnings ratio of 19.2x, close to its three-year average PE of 20x. The company is trading at a premium to competitor Dollar General (DG), which is valued at 17.7x.

In this series

This series previews Dollar Tree’s 3Q17 earnings. In this series, we’ll discuss its year-to-date performance, expected results, stock market performance, and Wall Street recommendations.

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