Dollar Tree (DLTR) Revenue Beats Quarterly Estimates, Stock Gains - TheStreet

NEW YORK (TheStreet) -- Dollar Tree (DLTR) - Get Report stock is rising 6.33% to $73.96 in mid-morning trading on Tuesday after the company reported better than expected revenue for the fiscal 2015 third quarter. Earnings fell short of estimates.

Revenue increased 136% year-over year to $4.95 billion for the quarter ended October 31, beating estimates of $4.84 billion.

Revenue growth was driven by a 2.1% increase in same store sales at Dollar Tree locations and $2.67 billion in sales from Family Dollar stores.

Dollar Tree posted earnings of 38 cents per share, missing estimates of 53 cents per share, because of costs related to the $9.2 billion acquisition of Family Dollar, which closed in July.

"While not included in our comp calculation, Family Dollar delivered positive same-store sales of low to mid-single-digits, as a percent, each month during the quarter," CEO Bob Sasser said in a statement. "Our integration project is on schedule and we are on track to achieve our stated synergy goals."

The discount store operator expects to achieve $300 million in annual synergies by end of 2018.

Additionally, Dollar Tree increased its 2015 fiscal year revenue guidance to $15.45 billion to $15.55 billion, from the previous outlook of $15.30 billion to $15.52 billion.

Separately, TheStreet Ratings team rates DOLLAR TREE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate DOLLAR TREE INC (DLTR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: DLTR

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