UPDATE: Dollar Tree Posts Upbeat Q4 Earnings, Issues Weak Outlook

reported better-than-expected earnings for the fourth quarter. However, the company issued a weak forecast for the full year. The Chesapeake, Virginia-based company posted a quarterly profit of $206.6 million, or $1 per share, versus a year-ago profit of $213 million, or $1.02 per share. Excluding certain items, Dollar Tree earned $1.16 per share in the quarter. Its net sales climbed 11% to $2.48 billion. However, analysts were expecting earnings of $1.15 per share on revenue of $2.47 billion. Dollar Tree's same-store sales gained 5.6% on a constant-currency basis, while the number of transactions increased 5% in the quarter. During the quarter, Dollar Tree opened 90 stores, expanded or relocated 6 stores, and closed 5 stores. Bob Sasser, Chief Executive Officer said, "I am extremely proud of our Company's performance in the fourth quarter and throughout 2014…We exceeded 1 billion transactions in a year for the first time in Company history. Our business model is strong, our inventories are fresh, our shelves are full of incredible values, and our store teams are ready for the Spring selling season." For the year, Dollar Tree projects earnings of $3.30 to $3.50 per share on revenue of $9.21 billion to $9.45 billion. Analysts had expected earnings of $3.57 per share on revenue of $9.4 billion. For the current quarter, the company projects earnings of $0.69 to $0.74 per share on sales of $2.15 billion to $2.20 billion. Analysts had expected earnings of $0.76 per share on revenue of $2.21 billion. Dollar Tree shares gained 1.20% to $78.40 in pre-market trading.