Post-Earnings Review - Dollar Tree

LONDON, December 11, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Dollar Tree Inc. (NASDAQ: DLTR). On November 20, 2014, the company reported its financial results for Q3 FY14 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Dollar Tree Inc. (Dollar Tree). During Q3 FY14, the company's consolidated net sales increased 11.2% on a Y-o-Y basis, and its diluted EPS (excluding acquisition-related costs) increased 19.0% Y-o-Y. The CEO of Dollar Tree, Bob Sasser, stated that he is extremely pleased with the company's Q3 FY14 performance. He added that the company's quarterly results validate its value enhancement initiatives targeted to attract new, and retain current, customers. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Dollar Tree's Q3 FY14 consolidated net sales increased to $2.10 billion from $1.88 billion in Q3 FY13. The company's reported net sales outperformed Bloomberg analysts' forecasts of $2.06 billion. Dollar Tree's consolidated same-store sales increased 5.9% in Q3 FY14, compared to a 3.1% increase in Q3 FY13. Mr. Sasser informed that the 5.9% same-store sales growth was the company's strongest comp since 2011, and represented its 27^th consecutive quarter of positive same-store sales. He added that Dollar Tree's store teams are well-prepared and its shelves are well-stocked with incredible values for the upcoming holiday season. The free research on DLTR can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Dollar%20Tree&d=11-Dec-2014&s=DLTR

In Q3 FY14, Dollar Tree's gross profit increased 9.9% Y-o-Y to $725.3 million from $659.9 million in Q3 FY13. However, as a percent of sales, the company's Q3 FY14 gross margin decreased by approximately 40 basis points Y-o-Y to 34.6%, primarily due to an increase in freight costs. During the reported quarter, Dollar Tree's selling, general and administrative expenses increased to $505.6 million from $455.6 million in Q3 FY13. Meanwhile, Dollar Tree's Q3 FY14 operating income grew to $219.7 million from $204.3 million in Q3 FY13. Dollar Tree's Q3 FY14 net income (including acquisition-related costs) increased to $133.0 million, or $0.64 per diluted share, from $125.4 million, or $0.58 per diluted share, in Q3 FY13. Analysts' from Bloomberg had also expected the company to report net income of $133.0 million, or $0.64 per diluted share, in Q3 FY14.

During the reported quarter, Dollar Tree opened 117 stores, expanded or relocated 18 stores, and closed 1 store. As of November 1, 2014, Dollar Tree operated 5,282 stores in 48 states and five Canadian provinces. Sign up and read the free analyst's notes on DLTR at:

http://get.Investor-Edge.com/pdf/?c=Dollar%20Tree&d=11-Dec-2014&s=DLTR

For Q4 FY14, the company estimates consolidated net sales to be in the range of $2.39 billion to $2.46 billion, based on a range of low-single digit to positive same-store sales. Diluted EPS for Q4 FY14 is estimated to be in the range of $1.07 to $1.14, excluding acquisition-related costs.

For full-year FY14, Dollar Tree expects consolidated net sales to range between $8.52 billion and $8.58 billion, compared to the company's previous estimates of $8.44 billion to $8.55 billion. The company's full-year FY14 net income per diluted share (including $0.07 of acquisition-related costs) is expected to range between $2.97 and $3.04. This compares to the company's previous guidance range of $2.94 to $3.06, which included $0.02 of acquisition-related costs from Q2 FY14. Visit Investor-Edge and access the latest research on DLTR at:

http://get.Investor-Edge.com/pdf/?c=Dollar%20Tree&d=11-Dec-2014&s=DLTR

Stock Performance  

On the day of the earnings release, November 20, 2014, Dollar Tree's stock surged 5.17%, ending the session at $65.87.  Since then, the company's stock has witnessed mostly a positive trend. However, on the last close, Wednesday, December 10, 2014, stock finished at $67.20, 1.33% below its previous day's closing price of $68.11, after vacillating between $67.10 and $68.11. A total of 1.77 million shares were traded, which was below its three months average volume of 2.43 million shares. Over the last one month and over the previous three months, the company's shares have surged 8.65% and 20.39%, respectively. Further, the stock has gained 19.11% since the start of 2014. Shares in Dollar Tree closed above their 50-day and 200-day moving averages of $61.12 and $55.64, respectively. Moreover, the stock traded at a PE ratio of 22.48 and has a Relative Strength Index (RSI) of 70.92.

Sneak Peek to Corporate Insider Trading 

In the last one month Dollar Tree has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on DLTR is available at:

http://get.Investor-Edge.com/pdf/?c=Dollar%20Tree&d=11-Dec-2014&s=DLTR

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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