Dollar Tree Profit Climbs

It also boosts its share buyback.
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Discount store operator Dollar Tree Stores (DLTR) - Get Report said its third-quarter earnings rose 4.5% from the year-ago period.

The Chesapeake, Va.-based retailer earned $32.5 million, or 32 cents a share, in the quarter, compared with $31.1 million, or 29 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 32 cents a share in the most recent quarter.

Third-quarter revenue rose 14.3% from a year-ago period to $910.4 million vs. analysts' expectations of $909.2 million.

The company expects to earn 87 cents a share to 93 cents a share in the fourth quarter, on revenue of $1.28 billion to $1.31 billion. Full-year earnings are expected to be $1.77 a share to $1.83 a share, on revenue of $3.93 billion to $3.96 billion.

Analysts expect earnings of 91 cents in the fourth quarter, on revenue of $1.26 billion. For the full year, analysts expect earnings of $1.81 a share, on revenue of $3.91 billion.

The company's comparable-store sales rose 4% for the quarter.

In a separate release, the company said that its board approved the buyback of an additional $500 million of its common stock. The authorization is in addition to the $300 million repurchase authorization that arose in March 2005 and presently has about $27 million remaining available to expend.

The company's shares were trading down 38 cents, or 1.2%, at $31.37 Tuesday.

This story was created through a joint venture between TheStreet.com and IRIS.