Benzinga Breakdown: Dollar Tree's Q1 Earnings

• EPS $0.89 vs $0.81 Est, up 25.4 percent YoY (excluding “one-time” tax benefits in this quarter and in the prior year quarter)
• Sales $5.09B vs $5.1B Est, up 134 percent YoY
• Including one-time tax benefit, EPS $0.98
• Comps rose 2.3 percent
• FY 2016 Outlook Raised

What This Means For Dollar Tree

Dollar Tree, Inc. DLTR credits its solid results to increased store traffic and increased average sales per transaction. The earnings outlook was raised to $3.58-$3.80 per share from $3.35-$3.65 per share, with the street estimating $3.67. Sales guidance was upped to $20.79-$21.08B from $20.76-$21.11B, while the consensus analyst estimate was $21B.

What This Means For Investors

Dollar Tree continues a trend of discount retailers finding themselves immune to the effect of Amazon.com, Inc. AMZN and a perceived slump in consumer spending, with both Costco Wholesale Corporation COST and Dollar General Corporation DG reporting strong results and Dollar General similarly raising guidance.

Dollar Tree shares traded at $85.50, up 9 percent.