Shares of Dollar Tree (DLTR) gained in pre-market trading after the discount retailer reported strong Q3 results. The retailer’s adjusted earnings increased by 15.5% year-over-year to $1.12 per share, above consensus estimates of $1.07 per share.
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Furthermore, the company’s revenues rose by 3.5% year-over-year to $7.56 billion in the third quarter. This surpassed Street estimates of $7.5 billion.
Additionally, DLTR announced the departure of its CFO, Jeff Davis, and the retailer stated that it will launch an external search for the new CFO.
DLTR Updates FY24 Outlook
Looking ahead, the company expects FY24 net sales to range from $30.7 billion to $30.9 billion, compared to its prior guidance between $30.6 billion and $30.9 billion. Adjusted earnings in FY24 are projected to be in the range of $5.31 to $5.51, compared to its prior forecast between $5.20 and $5.60 per share. For reference, analysts were expecting the company to report earnings of $5.41 per share on revenues of $30.7 billion.
In the fourth quarter, DLTR anticipates that its revenues will range from $8.1 billion to $8.3 billion, while comparable sales are likely to grow in the “low-single-digits.” Adjusted Q4 earnings are estimated to be in the range of $2.10 to $2.30 per share. For reference, analysts are expecting earnings of $2.23 per share on revenues of $8.24 billion.
Is DLTR a Good Stock to Buy?
Analysts remain sidelined about DLTR stock, with a Hold consensus rating based on six Buys, 14 Holds, and one Sell. Over the past year, DLTR has plunged by more than 40%, and the average DLTR price target of $81.78 implies an upside potential of 12.8% from current levels. These analyst ratings are likely to change following DLTR’s results today.
