NEW YORK (TheStreet) -- Shares of Dollar Tree (DLTR - Get Report) are soaring, up 5% to $65.76 in morning trading Thursday, after the discount retail chain reported better than expected third quarter earnings results before the opening bell today.
Dollar Tree posted third quarter profit of 69 cents per share, higher than the 58 cents from the same quarter a year ago, and topping the 64 cents analysts expected.
Revenue for the quarter jumped to $2.1 billion from the $1.88 billion in sales from a year ago, surpassing analysts' estimates of $2.06 billion.
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Consolidated same-store sales increased 5.9%, compared to a 3.1% increase from last year, and higher than the 4% growth analysts expected.
The discount retail chain is in discussions with the FTC about the number of store divestitures the agency requires to approve its Family Dollar Stores (FDO) acquisition.
Dollar Tree has said that it would be willing to divest as many stores as possible to get the deal done.
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, growth in earnings per share, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. 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:
- You can view the full analysis from the report here: DLTR Ratings Report