Dollar Tree Q4 Sales Top Views

Dollar Tree, Inc. DLTR reported better-than-expected sales for the third quarter on Tuesday. The Chesapeake, Virginia-based company reported a quarterly profit of $81.9 million, or $0.35 per share, versus a year-ago profit of $133 million, or $0.64 per share. Excluding items, the company's adjusted earnings came in at $0.49 per share. Its adjusted cash earnings increased to $1.33 per share from $1.02 per share. Its revenue rose to $4.95 billion from $2.10 billion. However, analysts were estimating earnings of $0.53 per share on revenue of $4.84 billion. The average estimate among 34 Estimize users was for earnings of $0.55 per share and revenue of $4.83 billion. Gross margin shrank to 28.3 percent from 34.6 percent. Same-store sales climbed 2.1 percent in the latest quarter on a constant currency basis. Bob Sasser, Chief Executive Officer of Dollar Tree, stated, "I am pleased with our Company's third quarter performance. Dollar Tree delivered same-store sales of 2.1%, which represented our 31st consecutive quarter of positive same-store sales. This was against a 5.9% comp from the prior year, our strongest quarter of 2014. While not included in our comp calculation, Family Dollar delivered positive same-store sales of low to mid-single-digits, as a percent, each month during the quarter." For the fourth quarter, Dollar Tree projects sales of $5.32 billion to $5.42 billion, versus analysts' estimates of $5.44 billion. It also expects cash earnings of $2.32 to $2.51 per share. For the full year, the company expects FY sales of $15.45 billion to $15.55 billion, versus analysts' expectations of $15.46 billion. Dollar Tree shares fell 2.52 percent to $67.80 in pre-market trading.