Dollar Tree's Earnings Beat Last Year's by 24%

Dollar Tree (Nasdaq: DLTR  ) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Dollar Tree beat slightly on revenues and beat slightly on earnings per share.

Compared with the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.

Margins expanded across the board.

Revenue details
Dollar Tree notched revenue of $1.95 billion. The 21 analysts polled by S&P Capital IQ expected to see net sales of $1.93 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.73 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.60. The one earnings estimate compiled by S&P Capital IQ predicted $1.57 per share. GAAP EPS of $1.60 for Q4 were 24% higher than the prior-year quarter's $1.29 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.8%, 20 basis points better than the prior-year quarter. Operating margin was 15.5%, 40 basis points better than the prior-year quarter. Net margin was 9.7%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.71 billion. On the bottom line, the average EPS estimate is $0.99.

Next year's average estimate for revenue is $7.40 billion. The average EPS estimate is $5.05.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 430 members out of 469 rating the stock outperform, and 39 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Dollar Tree a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dollar Tree is outperform, with an average price target of $86.14.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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7/25/2014 3:59 PM
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