Dollar Tree (DLTR) stock was up on Wednesday after the discount retailer reported its Q4 2024 earnings. The biggest news in this report is Dollar Tree’s agreement to sell the Family Dollar business for roughly $1 billion. Brigade and Macellum will buy the Family Dollar business in a deal set to close within 90 days. Dollar Tree expects net proceeds of $804 million and the economic impact of tax benefits from losses on the sale to be about $350 million.
Dollar Tree reported adjusted earnings per share of $2.29 on revenue of $8.27 billion, which beat Wall Street’s estimates of $2.20 per share and revenue of $8.25 billion. However, adjusted EPS was down 10.2% year-over-year from $2.55, and revenue decreased 4.3% from $8.64 billion in Q4 2023.
Dollar Tree stock was up 2.79% on today’s earnings results and Family Dollar sale news. Even so, it follows a 3.73% drop yesterday. The company’s shares were also down 10.41% year-to-date and have declined 49.33% over the last 52 weeks.
Dollar Tree Guidance
Investors got insight into what’s next for Dollar Tree thanks to its updated outlook. For Q1 2025, the retailer expects adjusted EPS to come in between $1.10 and $1.25 on revenue of $4.5 billion to $4.6 billion. Wall Street’s estimates for those quarters are $1.48 per share and revenue of $7.86 billion.
Expanding to the full year of 2025, Dollar Tree’s guidance includes adjusted EPS of $5.00 to $5.50 alongside $18.5 billion to $19.1 billion in revenue. For comparison, analysts expect adjusted EPS of $5.96 and revenue of $32.01 billion.
It’s worth noting that Wall Street’s estimates haven’t taken into account Dollar Tree’s Family Dollar sale. Updated analyst coverage should provide more accurate estimates in the coming days.
Is DLTR Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Dollar Tree is Moderate Buy based on five Buy, six Hold, and one Sell ratings over the last three months. With that comes an average price target of $81.08, a high of $95, and a low of $75. This represents a potential 20.78% upside for DLTR stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
