Dollar Tree stock falls premarket on weaker-than-expected earnings guidance

0
15

Dollar Tree Inc. DLTR, -0.08% shares fell 8% before market open on Thursday as the retailer narrowed its full-year revenue forecast and gave weaker-than-expected earnings guidance. Dollar Tree reported second-quarter sales of $6.77 billion, compared with $6.34 billion in the same period last year, and slightly below the FactSet consensus of $6.79 billion. Dollar Tree earned $1.60 a share on net income of $359.9 million, compared with earnings of $1.23 a share on net income of $282.4 million in the year-ago quarter. Analysts tracked by FactSet were looking for earnings of $1.60 a share. The company’s same-store sales were up 4.9% year-over-year, just below the FactSet consensus of 5%. Dollar Tree also narrowed its full-year revenue outlook to $27.85 billion to $28.1 billion, at the low end of the FactSet consensus of $28.1 billion. The retailer now sees full-year earnings of $7.10 to $7.40 a share, below the FactSet consensus of $8.17 a share. “Our second quarter performance reinforces the relevance of our brands for millions of households pressured by higher costs for food, fuel, rent and more. We delivered increases of 6.7% in sales, 14.2% in gross profit, 25.7% in operating profit and 30.1% in EPS in the face of great macroeconomic uncertainty,” said Dollar Tree CEO Mike Witynski, in a statement. Dollar Tree shares have risen 18.1% this year, compared with the S&P 500 Index’s SPX, +0.29% decline of 13.1% over the same period.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleBond Report: Bond yields edge lower ahead of Powell’s Jackson Hole speech
Next articleTesla on rise in premarket trading as stock split takes effect

LEAVE A REPLY

Please enter your comment!
Please enter your name here