The 10-second takeaway
For the quarter ended May 4 (Q1), Dollar Tree met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Margins grew across the board.
Dollar Tree booked revenue of $1.87 billion. The 21 analysts polled by S&P Capital IQ predicted revenue of $1.87 billion on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $1.72 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 $0.59. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.59 for Q1 were 18% higher than the prior-year quarter's $0.50 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 35.2%, 20 basis points better than the prior-year quarter. Operating margin was 11.6%, 70 basis points better than the prior-year quarter. Net margin was 7.2%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.86 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $7.94 billion. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 487 members out of 526 rating the stock outperform, and 39 members rating it underperform. Among 150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give Dollar Tree a green thumbs-up, and three 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 $49.74.
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