What happened

Shares of Dollar Tree Inc. (NASDAQ:DLTR) were up 9.5% as of 1 p.m. EDT Thursday after the specialty discount retailer announced strong fiscal second-quarter 2017 results.

More specifically, Dollar Tree's revenue climbed 5.7% year over year to $5.28 billion, helped by a 2.4% increase in consolidated same-store sales. On the bottom line, that translated to net income of $233.8 million, and 36.1% growth in earnings per diluted share to $0.98. Analysts, on average, were only expecting earnings of $0.87 per share on revenue of $5.24 billion.

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So what

"Both Dollar Tree and Family Dollar produced positive same-store sales, our enterprise operating margin improved 80 basis points and earnings per share exceeded the high end of our guidance range," said Dollar Tree CEO Bob Sasser, adding: "Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience."

To be sure, same-store sales for the Dollar Tree concept climbed 3.9% year over year, while comps for Family Dollar locations grew 1% -- both admirable achievements in today's difficult retail environment.

Now what

For the current quarter, Dollar Tree expects revenue to be in the range of $5.2 billion to $5.29 billion, assuming a low-single-digit increase in consolidated same-store sales, and earnings per diluted share of $0.83 to $0.90.

In addition, Dollar Tree increased its guidance for the full year to call for fiscal 2017 revenue of $22.07 billion to $22.28 billion (up from $21.95 billion to $22.25 billion previously), and earnings per diluted share between $4.44 and $4.60 (up from $4.17 to $4.43 previously).

In the end, this was a straightforward beat-and-raise scenario from Dollar Tree. With shares down nearly 23% over the past year as of yesterday's close, it's no surprise to see Dollar Tree stock rebounding today.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.