Dollar Tree’s Earnings Forecast: Analyst Insights
In the latest projections by Wall Street analysts, Dollar Tree (DLTR) is anticipated to report earnings of $2.18 per share for the upcoming quarter, indicating a significant drop of 14.5% compared to the same quarter last year. Additionally, revenues are expected to reach $8.23 billion, which translates to a year-over-year decline of 4.7%. Over the past month, the consensus estimate for earnings per share (EPS) has been adjusted downwards by 1.2%, reflecting a re-evaluation of initial expectations by analysts covering the stock.
The Importance of Earnings Estimate Revisions
Before a company releases its earnings report, it is essential to pay attention to any changes in earnings forecasts. These revisions often serve as key indicators that can help predict how investors might react to the stock. Historical data has shown a strong link between the direction of earnings estimate revisions and the stock’s short-term price movements. While investors typically rely on overall consensus estimates for earnings and revenues to gauge a company’s performance, an in-depth look at analysts’ projections for specific metrics can provide a clearer picture.
Dollar Tree’s Key Metric Estimates
According to analysts, the anticipated ‘Net Sales – Dollar Tree’ is projected to hit $4.96 billion, indicating no change from the previous year’s quarter. For ‘Net Sales – Family Dollar,’ a forecast of $3.29 billion suggests a decline of 10.3% year over year. The total net sales estimate is expected to reach $8.26 billion, marking a 4.4% decrease compared to the same period last year. Analysts also forecast that ‘Other Revenue’ will amount to $7.00 million, reflecting a slight year-over-year decline of 0.1%.
Same-Store Sales Predictions
The consensus estimate for ‘Dollar Tree – Same-Store Sales’ stands at 1.2%, a noticeable decrease from the previous year’s figure of 6.3%. Analysts predict ‘Enterprise – Same-Store Sales’ at 1.3%, compared to 3% in the year-ago period. Furthermore, the total number of stores is projected to be 16,622, down from 16,774 reported in the same quarter last year. Analysts also estimate that ‘Dollar Tree – Ending Stores’ will total 8,877, an increase from the 8,415 reported in the prior year.
Store Closure and Square Footage Estimates
According to analysts, ‘Family Dollar – Ending Stores’ is expected to reach 7,709, down from 8,359 in the previous year. The total estimated ‘Selling Square Footage’ is projected to be 137.40 million square feet, slightly up from the 136.8 million square feet reported last year. Analysts predict that ‘Dollar Tree – New Stores’ will amount to 50, a significant decrease from the 146 reported in the same quarter last year. Additionally, ‘Family Dollar – Number of Stores Closed’ is expected to be 21, compared to 59 closures in the prior year.
Dollar Tree’s Market Performance
In recent market activity, shares of Dollar Tree have experienced a decline of 15% over the past month, while the Zacks S&P 500 composite has dropped by 7.5% during the same period. Currently, Dollar Tree holds a Zacks Rank of #3 (Hold), suggesting that its performance may reflect the broader market trends in the near future.
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