Dollar Tree, Inc. (DLTR), headquartered in Virginia, operates discount variety stores in major metropolitan areas, mid-sized cities, and small towns and offers a wide range of everyday merchandise, including housewares, seasonal goods, candy, food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items. Its market cap currently stands at $14.3 billion. DLTR is scheduled to release its fiscal 2024 Q3 earnings results on Wednesday, Dec. 4.
Ahead of the event, analysts expect Dollar Tree to report a profit of $1.06 per share, up 9.3% from $0.97 per share in the year-ago quarter. The company has exceeded or met Wall Street’s EPS estimates in only one of the last four quarters while missing on three other occasions.
Looking ahead, analysts expect Dollar Tree to report an EPS of $5.33 in fiscal 2025, down 9.5% from $5.89 in fiscal year 2024. However, its fiscal 2026 EPS is projected to rise 13.3% annually to $6.04.
Over the past 52 weeks, DLTR stock has plunged by 38.8%, trailing behind the broader S&P 500 Index's ($SPX) 41.4% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 22% returns during the same period.
DLTR’s price action has lagged the broader market over the past year due to persistent inflationary pressures impacting both product and labor costs, which have squeezed margins and limited profitability. Additionally, intense competition from major players has made it difficult for DLTR to capture market share. Family Dollar, a significant part of DLTR’s portfolio, remains a notable weak spot, struggling with ongoing unprofitability that has weighed down the company’s overall financial performance.
On Sept. 4, Dollar Tree reported earnings for the second quarter, and its shares plummeted 16.8% in September as management revised down its earnings and revenue guidance for the full year. Previously, Dollar Tree was expected to generate upwards of $32 billion in sales in the fiscal year 2024. Now, it expects just $30.6 billion to $30.9 billion in revenue for 2024. EPS guidance fell to a range of $5.20 to $5.60, compared to $6.50 to $7.00 previously.
The current consensus opinion on Dollar Tree stock is “Moderate Buy” overall. Out of 24 analysts covering the stock, nine suggest a “Strong Buy,” 14 recommend a “Hold,” and the remaining one analyst advocates a “Moderate Sell.”
Furthermore, the average analyst price for DLTR is $82.40, indicating a potential upside of 24.4% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
