Dollar Tree, Inc. Stock Plunges on Earnings Miss

Dollar Tree, Inc. (NASDAQ:DLTR) stock was hit hard today after reporting an earnings miss for the fourth quarter of 2017.

Dollar Tree, Inc. Stock Plunges on Earnings Miss
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During the fourth quarter of the year, Dollar Tree, Inc. reported earnings per share of $1.89. This is an increase over its earnings per share of $1.36 from the same period of the year prior. However, it was a blow to DLTR stock by coming in just below Wall Street’s earnings per share estimate of $1.90 for the quarter.

Dollar Tree, Inc.’s net income reported in the fourth quarter of 2017 was $1.04 billion. This is up from its net income of $321.80 million that was reported in the fourth quarter of 2016. DLTR notes that it got a one-time boost of $583.70 million from the recent tax reform in the U.S.

Operating income reported by Dollar Tree, Inc. for the fourth quarter of 2017 was $765.60 million. The retail chain’s operating income from the same time last year was $586.50 million.

Dollar Tree, Inc. also reported revenue of $6.36 billion for the fourth quarter of the year. This is better than its revenue of $5.64 billion that was reported in the same quarter of the previous year. Despite this, it was still bad news for DLTR stock by missing analysts’ revenue estimate of $6.39 billion for the period.

Dollar Tree, Inc.’s recent earnings report also includes its outlook for the full year of 2018. This includes earnings per share ranging from $5.25 to $5.60.  Wall Street is looking for earnings per share of $5.90 for the year.

Dollar Tree, Inc. says that it is expecting revenue for the full year of 2018 to come in between $22.70 billion and $23.12 billion. Analysts are estimating revenue of $23.10 billion for the year.

DLTR stock was down 15% as of Wednesday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/dollar-tree-down-on-q4-earnings-miss/.

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