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NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR) are declining, slightly lower by 0.28% to $77.58 in midday trading Tuesday, ahead of the discount retailer's fourth quarter earnings release scheduled for tomorrow morning before the market opens.

For the fourth quarter, analysts are expecting earnings of $1.15 per share, up from the $1.02 the retailer posted in the same period of last year.

Revenue for the quarter is expected to come in at $2.47 billion, higher compared to the $2.23 billion Dollar Tree reported one year earlier.

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Dollar Tree is set to acquire Family Dollar Stores (FDO) , despite larger rival Dollar General's (DG) increased bid for the company.

Last month, Family Dollar shareholders approved its deal to be bought by Dollar Tree.

Chesapeake, VA-based Dollar Tree is an operator of discount variety stores offering merchandise at the fixed price of $1 throughout the U.S. and Canada.

The company operates about 4,812 stores in the U.S. as well as 180 stores in Canada. 

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

"We rate DOLLAR TREE INC (DLTR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 11.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 46.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • DOLLAR TREE INC has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, DOLLAR TREE INC increased its bottom line by earning $2.75 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.11 versus $2.75).
  • The net income growth from the same quarter one year ago has exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 6.1% when compared to the same quarter one year prior, going from $125.40 million to $133.00 million.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.47 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • You can view the full analysis from the report here: DLTR Ratings Report