What to Expect When Dollar Tree (DLTR) Reports Earnings Results Tomorrow

NEW YORK (TheStreet) -- Discount variety retailer Dollar Tree (DLTR) is scheduled to release its 2015 first quarter earnings results before the market open on Thursday. Analysts are expecting the company to report a year-over-year rise in earnings and revenue for the most recent quarter.

Dollar Tree has been forecast to report earnings of 75 cents per share on revenue of $2.20 billion for the 2015 first quarter.

Last year, Dollar Tree said it earned 67 cents per diluted share on net sales of $2 billion, for the 2014 first quarter.

Shares of Dollar Tree are lower by 1.08% to $76.71 in mid-morning trading on Wednesday.

Last summer, Dollar General offered to acquire Family Dollar (FDO) for $8.5 billion and in January of this year Family Dollar's shareholder's approved the companies' deal.

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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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

  • DLTR's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
  • 39.28% is the gross profit margin for DOLLAR TREE INC which we consider to be strong. It has increased from the same quarter the previous year.
  • DOLLAR TREE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DOLLAR TREE INC increased its bottom line by earning $2.90 versus $2.75 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus $2.90).
  • Net operating cash flow has increased to $538.30 million or 26.15% when compared to the same quarter last year. Despite an increase in cash flow, DOLLAR TREE INC's average is still marginally south of the industry average growth rate of 30.18%.
  • You can view the full analysis from the report here: DLTR Ratings Report

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