Shares of Dollar Tree (DLTR - Get Report)  gained 2.22% to $78.38 on Wednesday morning after the discount chain reported better-than-expected earnings and revenue for the fourth quarter.

The Chesapeake, Va.-based retailer posted earnings of $1.36 a share, surpassing analysts' estimates of $1.31 a share. Revenue came in at $5.64 billion vs. the FactSet consensus of $5.62 billion.

Same-store sales rose 1.2% during the period, while analysts had projected an increase of 1.8%. Dollar Tree same-store sales grew 2.3%, while Family Dollar  (FDO) same-store sales edged up 0.2%. The same-store sales growth was driven by increases in customer count and average ticket.

For the current quarter, the company sees earnings between 91 cents and 98 cents a share on revenue of $5.26 billion to $5.35 billion. Analysts are modeling earnings of $1.11 a share on revenue of $5.32 billion for the first quarter.

Executives on a call with analysts attributed the light earnings guidance to higher diesel fuel prices. Diesel costs will be a roughly 2 cent a share headwind during the quarter. 

Full-year earnings per share are expected to range between $4.20 and $4.56 on revenue of $21.94 billion to $22.33 billion. Wall Street projects 2017 earnings of $4.52 a share on revenue of $21.88 billion.

Executives also said they would be "mindful" of Walmart's (WMT - Get Report)  efforts to lower pricing and of others, like Target (TGT - Get Report) , in the sector. But, they argued the company has more than one tool to show customers value in its stores.