Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dollar Tree falls 9% as FY guidance suggests weaker Q4

Published 11/22/2022, 10:01 AM
Updated 11/22/2022, 10:14 AM
© Reuters.  Dollar Tree (DLTR) falls 9% as FY guidance suggests weaker Q4

© Reuters. Dollar Tree (DLTR) falls 9% as FY guidance suggests weaker Q4

By Senad Karaahmetovic

Dollar Tree (NASDAQ:DLTR) reported better-than-expected Q3 results, which was not enough to see shares trade higher after earnings.

DLTR posted an EPS of $1.20 on revenue of $6.94 billion to beat the average analyst estimate of $1.18 on revenue of $6.84B. Revenue increased over 8% year-over-year while enterprise comparable sales grew +6.5%, higher than the +4.73% consensus.

For this quarter, Dollar Tree sees sales between $7.54B and $7.68B, higher than the consensus of $7.52B.

"We are increasing our sales outlook for the year. The efforts to evolve the assortment to drive consumables performance at Dollar Tree, combined with initiatives designed to improve the value proposition at Family Dollar, are working," Mike Witynski, President and CEO, said.

In Q4, Dollar Tree sees net sales of $7.54B to $7.68B, beating the estimate of $7.54B.

However, the company said it expects to see FY EPS in the lower half of the previously provided outlook range of $7.10 to $7.40. Analysts were expecting a Q4 EPS of $7.28. On a full-year basis, DLTR expects revenue in the range of $28.14-28.28B, up from the prior range of $27.85-28.10B, and higher than the consensus of $28B.

BMO analysts said the guidance suggests "a slightly weaker 4Q but still with a wide range of outcomes." They rate DLTR shares with an Outperform rating and a $187 target price.

Telsey Advisory Group analysts took note of stronger-than-expected comp sales.

"Dollar Tree executed well in 3Q22, although the 4Q22 outlook is mixed, with stronger sales but softer profits. Broadly, we continue to believe the company remains well-positioned to gain market share, given its convenient locations, value merchandise, and transformative initiatives," they said.

As of 10:00 EST (15:00 GMT), DLTR shares are down 9%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.