What To Expect From Dollar Tree's Earnings

Shares of Dollar Tree, Inc. DLTR are down Wednesday as the company prepares to announce its first quarter financial results on Thursday before the market opens.

For the quarter, the company guided a 7 percent growth in earnings, to $0.72 per share, up from $0.67 per share reported a year ago. Management also expects to see higher revenue of $2.175 billion, up from $2 billion registered in the first quarter of 2014.

According to Estimize, experts and the crowd are slightly more bullish than management, and project consensus earnings of $0.74 per share on revenue of $2.196-$2.197 billion.

Dollar Tree has come short estimates in several of the latest quarters. It should also be noted that the company’s earnings respond to a cycle and this quarter’s results are expected to fall into it.

Institutional Sponsorship

With the recent end of the 13F filing season, several major investment firms disclosed long equity stakes in Dollar Tree. The Vanguard Group is the largest known institutional shareholder, with 15,562,319 shares worth $1.26 billion.

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Steven Cohen’s Point72 Asset Management boosted its exposure to Dollar Tree over the first quarter of the year. After almost tripling its stake, the fund owns 2,045,488 shares of Dollar Tree.