Shares of Dollar Tree (NASDAQ: DLTR) slid in pre-market trading on Tuesday as the discount retailer stated that it expects diluted earnings for FY22 to be at the lower end of its outlook, because high inflation pressurizes its costs.
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The company expects FY22 earnings to range between $7.10 and $7.40 per diluted share. However, DLTR anticipates its sales to remain strong and bumped up its FY22 sales outlook to range from $28.14 billion to $28.28 billion, versus its prior outlook between $27.85 billion and $28.10 billion.
DLTR delivered a strong Q3 performance with sales of $6.94 billion, up 8.1% year-over-year and surpassing Street estimates by $100 million.
Diluted earnings came in at $1.20 per share in Q3, a growth of 25% year-over-year and beating analysts’ estimates of $1.18.
As the above graphic indicates, Wall Street analysts have a consensus price target of $168.44 on DLTR stock, indicating an upside potential of 1.9% at current levels.
