NEW YORK (TheStreet) -- Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report stock is plunging 7.93% to $70.21 on Tuesday morning after the discount retailer posted its fiscal 2015 second quarter earnings results that missed analysts' revenues estimates.
Earnings beat analysts' estimates.
For the second quarter ended August 1, the company posted earnings of 67 cents per share on revenue of $3.01 billion.
Analysts were expecting the company to report earnings of 62 cents a share on revenue of $3.04 billion.
In the same quarter the previous year, the company posted earnings of 61 cents per share on revenue of $2.03 billion.
Despite the revenue miss, the company's sales grew year-over-year.
Dollar Tree recently completed its acquisition of Family Dollar Stores (FDO) . Revenue for the recent quarter increased 48.3% year-over-year, helped by $811.6 million in Family Dollar business sales.
"This combination provides us with the unique opportunity to leverage our multiple banners to better serve a broader range of customers, while enhancing our ability to deliver long-term profitable growth for our shareholders," CEO Bob Sasser stated.
In addition, same-store sales rose 2.7% from the same period the previous year.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on Dollar Tree earnings saying: "Here's a company that's underpromising so it can over deliver, which means that once the analysts cut their numbers tomorrow, you are going to get a buying opportunity."
Looking ahead, the company expects full year revenue to be between $15.3 billion to $15.52 billion.
Dollar Tree operates discount variety stores in the U.S. and Canada.
Separately, TheStreet Ratings team rates DOLLAR TREE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR TREE INC (DLTR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: DLTR Ratings Report