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.
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 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.
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.
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.
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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