The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Dollar Tree met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Dollar Tree chalked up revenue of $2.25 billion. The 23 analysts polled by S&P Capital IQ expected a top line of $2.23 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.95 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.01. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. GAAP EPS of $1.01 for Q4 were 26% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 10 basis points better than the prior-year quarter. Operating margin was 16.2%, 60 basis points better than the prior-year quarter. Net margin was 10.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $7.90 billion. The average EPS estimate is $2.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 476 members out of 518 rating the stock outperform, and 42 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Dollar Tree a green thumbs-up, and seven 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 $48.65.
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