Dollar Tree earnings: DLTR shares fall 3% on dull guidance

<p>Dollar Tree (NASDAQ: DLTR) earnings for the discount retailer’s financial fourth quarter of 2019 have the DLTR share down on Wednesday. This is despite the adjusted earnings per share (EPS) of $ 1.79 beating Wall Street‘s estimate of $ 1.75. However, its revenue of $ 6.32 billion is below analysts’ estimates of $ 6.39 billion.

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Here’s what’s worth watching from the latest Dollar Tree earnings report.

Adjusted earnings per share decreased by 5.8% from $ 1.90 reported during the same period last year. Revenue for the quarter was 1.8% higher than $ 6.21 billion compared to the fourth quarter of 2018. Operating profit of $ 249.4 million is a positive change compared to the previous year from an operating profit of – $ 2.15 billion. The Dollar Tree earnings report also has a net income of $ 123 million. This is a transition from the company’s net loss of – $ 2.3 billion reported during the same period the year before.

Gary Philbin, CEO of Dollar Tree, said this about the DLTR report’s stock performance:

“For the fourth quarter, despite the condensed holiday season, we delivered positive compensation to the company, while managing margins and costs effectively to achieve adjusted earnings per share near the top of our indicative range.”

The Dollar Tree earnings report also includes the outlook for the fiscal year 2020. This is expected to dilute earnings per share of $ 4.80 to $ 5.15 on revenue of $ 24.21 billion to $ 24.66 billion. By comparison, Wall Street expects diluted earnings per share of $ 4.72 per share and revenue of $ 23.68 billion during the year.

The DLTR share fell by 3.39% as of Tuesday afternoon.

At the time of writing, William White had no position in any of the above securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/03/dollar-tree-earnings-drop-dltr-stock/.

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