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Dollar Tree (DLTR) to Report Q4 Earnings: What's in the Cards?

·3 min read

Dollar Tree, Inc. DLTR is slated to release fourth-quarter fiscal 2020 results on Mar 3. The discount retailer is likely to have witnessed revenue and earnings growth in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $2.12 per share suggests an increase of 18.4% from the year-ago quarter’s $1.79. Moreover, the consensus mark has moved up 0.5% in the past 30 days. The consensus mark for revenues is pegged at $6,774 million, indicating growth of 7.3% from the figure reported in the year-ago quarter.

In the last reported quarter, the company delivered an earnings surprise of 20.9%. Moreover, it delivered an earnings surprise of 17.1%, on average, in the trailing four quarters.

Dollar Tree, Inc. Price and EPS Surprise

Dollar Tree, Inc. Price and EPS Surprise
Dollar Tree, Inc. Price and EPS Surprise

Dollar Tree, Inc. price-eps-surprise | Dollar Tree, Inc. Quote

Key Factors to Note

Dollar Tree has been gaining from strength in Dollar Tree and Family Dollar segments, which has been leading to a solid comparable store sales (comps) performance. Robust comps growth, which along with margin growth, is expected to have bolstered earnings. In its last earnings call, management noted that initial comps trends in the fiscal fourth quarter remained favorable and better than the third-quarter levels.

Further, the company remains focused on opening stores, improving store productivity, increasing operating efficiencies along with store renovations, re-banners and closings, which are likely to have contributed to the fiscal fourth-quarter results. Keeping in these lines, the H2 renovations program for its Family Dollar stores has been a key growth driver. Additionally, Dollar Tree store’s expanded Crafter’s Square assortments are expected to have performed very well. Apart from these, its restructuring and expansion initiatives, as evident from steady store openings and improvement of distribution centers, are likely to have aided the top line.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Dollar Tree has a Zacks Rank #2 and an Earnings ESP of +1.94%.

Other Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Abercrombie & Fitch ANF currently has an Earnings ESP of +9.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Target Corporation TGT currently has an Earnings ESP of +8.17% and a Zacks Rank #2, at present.

DICK’S Sporting Goods DKS currently has an Earnings ESP of +3.93% and a Zacks Rank #2.

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