Updated from 7:51 a.m. EDT.

NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR) - Get Report were sliding 9.53% to $85.88 on heavy trading volume late Thursday afternoon after the company posted lower-than-expected earnings and revenue for the 2016 second quarter.

Before the opening bell, the Chesapeake, VA-based discount retailer reported earnings of 72 cents per diluted share, while analysts were looking for 73 cents per share.

Revenue for the quarter was $5 billion, which fell short of analysts' estimates of $5.09 billion.

Same-store sales grew by 1.2% during the period, but missed Wall Street's projections for growth of 2.4%.

In the third quarter, Dollar Tree is expecting earnings of 76 cents to 82 cents on revenue of $5.02 billion to $5.2 billion. Analysts are looking for earnings of 76 cents per share on revenue of $5.13 billion.

For the full year, the company raised its earnings guidance to $3.67 per share to $3.82 per share, up from its prior view of $3.58 to $3.80 per share. Analysts expect earnings of $3.79 per share for the year.

Dollar Tree also estimates full-year revenue between $20.69 billion to $20.87 billion, down from its prior guidance of $20.79 billion to $21.08 billion. Wall Street is looking for revenue of $20.97 billion in 2016.

The drop in revenue is attributed to low single-digit increases in same-store sales.

CEO Bob Sasser said in a statement that the company faces a "challenging" retail sales environment, but continues to deliver gross margin improvement and manage expenses "effectively."

Over 13.26 million shares of Dollar Tree stock have traded so far today vs. the 30-day daily average of 1.54 shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.

We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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

Image placeholder title