Dollar Tree (DLTR) Gaisn Despite Earnings Miss

NEW YORK (TheStreet) -- Dollar Tree (DLTR) was gaining 6.2%to $55.92 Wednesday despite missing analysts' estimates for earnings and revenue in the fourth quarter.

The retailer reported earnings of $1.02 a share for the quarter that ended January 2014. That's 4 cents lower than the Capital IQ Consensus Estimate of $1.06 a share. Revenue fell 0.5% from the year-ago quarter to $2.23 billion, missing estimates of $2.29 billion.

Looking to the first-quarter, Dollar Tree expects earnings of between 63 cents a share and 68 cents a share, compared to analysts' estimates of 69 cents a share.

For the full-year 2015, the company expects earnings of between $2.91 and $3.13 a share, compared to estimates of $3.31 a share. The company expects revenue of between $8.35 billion and $8.58 billion for the year, while analysts expect $8.66 billion.

Must read: Retail Stocks Highlight the Economic Divide

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 number of 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, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

If you liked this article you might like

S&P 500 and Dow Score Records With Wall Street Upbeat Ahead of Fed

S&P 500 and Dow on Track for Records With Markets in Good Mood Ahead of Fed

Dow and S&P 500 Reach New Intraday Highs With Markets in Good Mood Ahead of Fed

Dollar Tree Promotes Philbin to CEO as Sasser Moves to Board

Analysts Wrong on iPhone; Retail Not Going Away: Best of Cramer