Dollar Tree Earnings: DLTR Stock Nose Dives 16% on Q3 Miss, Weak Guidance

Dollar Tree (NASDAQ:DLTR) earnings for the retailer’s third quarter of 2019 have DLTR stock taking a beating on Tuesday. That’s due to its diluted EPS of $1.08. This is far from the $1.13 per share that Wall Street was expecting. Revenue of $5.75 billion is above analysts’ estimates of $5.74 billion, but that wasn’t helping DLTR stock today.

Dollar Tree Earnings: DLTR Stock Nose Dives 16% on Q3 Miss, Weak Guidance
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Let’s take a closer look at the most recent Dollar Tree earnings report.

  • Diluted per-share earnings are down 8.47% from $1.18 in the same period of the year prior.
  • Revenue is sitting 3.79% higher than the $5.54 billion reported during the same time last year.
  • Operating income for the quarter comes in at $358.40 million.
  • That’s a 7.58% drop from an operating income of $387.80 million in the third quarter of 2018.
  • Net income in the current Dollar Tree earnings report is $255.80 million.
  • This is 9.23% worse than the company’s net income of $281.80 million in the third quarter of the previous year.

Gary Philbin, President and CEO of Dollar Tree, says this about the Q3 DLTR stock earnings.

“Fiscal 2019 has been a unique year as the result of several factors: the material acceleration in our Family Dollar store optimization initiatives, the consolidation of our two store support centers into southeast Virginia, the global helium shortage, and the continued uncertainty regarding trade and the related tariffs.”

The Dollar Tree earnings report also includes more bad news for DLTR stock with a guidance update. The company expects diluted earnings per share between $4.66 and $4.76 on revenue ranging from $23.62 billion to $23.74 billion in 2019. For comparison, Wall Street is looking for EPS of $5.05 on revenue of $23.74 billion for the year.

DLTR stock was down 16.18% as of Tuesday afternoon.

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

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