Seeking Alpha
Profile| Send Message| ()  

Dollar Tree, Inc. (DLTR) is scheduled to report its Q2 2012 results on August 16, 2012, before the market opens. The Street expects EPS and revenue of $0.47 and $1.71B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from DLTR and the news from its closest competitors.

Dollar Tree, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.50 EPS, beating analyst estimates of $0.49.

Dollar Tree, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.47 based on 24 analysts' estimates, up from $0.39 a year ago. Revenue estimates are $1.71B, up from $1.54B a year ago. The median target price by analysts for the stock is $54.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 2, 2012, Deutsche Bank downgraded the company from Buy to Hold.
  • On May 18, 2012, FBR Capital reiterated a Mkt Perform rating for the company.
  • On April 27, 2012, BB&T Capital Mkts upgraded the company from Hold to Buy.
  • On February 23, 2012, RBC Capital Mkts reiterated an Outperform rating for the company.
  • On February 23, 2012, Barclays Capital reiterated an Equal Weight rating for the company.
  • On February 21, 2012, Feltl & Co. reiterated a Strong Buy rating for the company.

Latest News

  • On May 29, 2012, Dollar Tree, Inc. announced that its Board of Directors has approved a 2-for-1 stock split in the form of a 100% common stock dividend. The new shares will be distributed on June 26, 2012, for shareholders of record as of the close of business on June 12, 2012. With the stock split, the number of outstanding shares of the company's common stock will increase from approximately 116 million shares, pre-split, to approximately 232 million shares, post-split.
  • On May 17, 2012, Dollar Tree, Inc. announced that for the second quarter of 2012, it expects sales to be in the range of $1.66 billion to $1.70 billion, based on low to mid single digit positive comparable store sales and diluted earnings per share (EPS) to be in the range of $0.87 to $0.93. For fiscal 2012, it expects sales to be in the range of $7.33 billion to $7.46 billion, based on a range of low to mid single digit positive comparable store sales and diluted earnings per share to be $4.74 to $4.94.
  • On February 22, 2012, Dollar Tree, Inc. announced that for the first quarter of 2012, it expects sales to be in the range of $1.65 billion to $1.69 billion and diluted earnings per share are expected to be in the range of $0.91 to $0.97. For fiscal 2012, it expects sales will range from $7.25 billion to $7.42 billion and diluted EPS are expected to be in the range of $4.65 to $4.90. These estimates assume no impact from potential additional share repurchase activity in 2012.

Competitors

Big Lots (BIG), Dollar General (DG), and Family Dollar Stores (FDO) are considered major competitors for Dollar Tree and the table below provides the key metrics for these companies and the industry.

Dollar Tree, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

DLTR Chart

DLTR data by YCharts

Competitors' Latest Developments

  • On August 1, 2012, Glancy Binkow & Goldberg LLP announced that it is investigating potential claims on behalf of purchasers of the common stock of Big Lots, Inc., concerning possible violations of federal securities laws.
  • On July 19, 2012, Big Lots Inc announced that Goldfarb LLP is investigating whether the board of directors of the Company violated shareholder protection laws by issuing materially false and misleading statements to investors that artificially inflated the Company's stock price.
  • On June 28, 2012, Dollar General Corp. announced the pricing of an offering of $500 million of its 4.125% Senior Notes due 2017 (the Notes). The Notes, which are fully and unconditionally guaranteed on a senior unsecured basis by each domestic subsidiary of Dollar General that guarantees its senior secured credit facilities, will pay interest at a rate of 4.125% per annum semi-annually on January 15 and July 15 of each year, commencing January 15, 2013.
  • On June 28, 2012, Family Dollar Stores, Inc. announced that for fourth quarter of 2012, it expects comparable store sales to increase between 5% and 7% and that earnings per diluted share to be between $0.71 and $0.81, compared with $0.66 in the fourth quarter of fiscal 2011.
  • On June 4, 2012, Dollar General Corp. announced that it continues to expect total sales for fiscal 2012 to increase 8% to 9% over the 53 week fiscal 2011, or 10% to 11% on a comparable 52-week basis.
  • On May 23, 2012, Big Lots Inc announced that for the second quarter of 2012, it expects income from continuing operations of $0.37 to $0.42 per diluted share. The Company has updated fiscal 2012 annual guidance for adjusted income from continuing operations to $3.25 to $3.40 per diluted share (non-GAAP).
  • On May 10, 2012, NetSpend Holdings Inc announced that it has entered into a distribution agreement to sell the NetSpend Visa Prepaid Debit Card at Family Dollar Stores, Inc. locations nationwide.
  • On April 16, 2012, Family Dollar Stores, Inc. announced it has agreed in terms to a multi-year partnership with PepsiCo, Inc., to sell its beverages in its 7,100 stores across 45 states.
  • On April 10, 2012, Family Dollar Stores, Inc. announced that it has named Mary A. Winston to the position of Executive Vice President and Chief Financial Officer. In conjunction with this change, Kenneth T. Smith, former Senior Vice President - Chief Financial Officer, expects to leave the Company, serving in a transition role as Senior Vice President - Finance until October 2012.
  • On March 28, 2012, Family Dollar Stores, Inc. announced that for fiscal 2012, it expects earnings per share in the range of $3.55 and $3.75 and comparable store sales of between 5% and 6%. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.61 for fiscal 2012.
  • On March 27, 2012, Big Lots Inc announced that for fiscal 2012, it expects to generate revenues of around $5.7 billion and Non-Gaap earnings per share of $3.40 to $3.50 per diluted share.
  • On March 22, 2012, Dollar General Corp. announced that for fiscal 2012, it expects total sales to increase 10% to 11% on a comparable 52-week basis, Same-store sales, based on a comparable 52-week period, are expected to increase 3% to 5%, operating profit (EBIT) is expected to be between $1.60 and $1.65 billion.
  • On March 2, 2012, Big Lots Inc announced that for fiscal 2012, it expects adjusted income from continuing operations to be $3.40 to $3.50 per diluted share (non-GAAP). For the first quarter of 2012, it estimates adjusted consolidated income from continuing operations will be in the range of $0.75 to $0.81 per diluted share (non-GAAP).

Technical Overview


The stock has a market capitalization of $11.98B and is currently trading at $51.66 with a 52 week range of $30.56 - $56.82. The stock's year-to-date performance has been 24.30%. It is currently trading above 20 and 200 SMA, but below 50 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Dollar Tree