Dollar Tree Sees Q2 EPS Below View; But Raises FY EPS Outlook

(RTTNews) - Dollar Tree Inc. (DLTR) said it estimates net sales for the second quarter of 2016 to range from $5.03 billion to $5.12 billion, based on a low single-digit increase in same-store sales and year-over-year selling square footage growth of 2.4%. Earnings per share are expected to range from $0.66 to $0.72. Analysts polled by Thomson Reuters expect the company to report earnings of $0.75 per share and revenues of $5.09 billion for the second-quarter. Analysts' estimates typically exclude special items.

The Company now anticipates net income per share for full-year 2016 will range between $3.58 and $3.80. This compared to its previous EPS guidance range of $3.35 to $3.65.

Consolidated net sales for full-year 2016 are now expected to range between $20.79 billion and $21.08 billion compared to the Company's previously expected range of$20.76 billion to $21.11 billion. This estimate is based on a low single-digit increase in same-store sales, and 4.0% square footage growth.

Wall Street currently is looking for fiscal year 2016 earnings of $3.67 per share on annual revenues of $21.05 billion.

Consolidated net sales increased 133.6% to $5.09 billion from $2.18 billion in the prior year's first quarter. The $2.91 billion increase included $2.70 billion in sales from Family Dollar stores, sales from new Dollar Tree stores, and a 2.3% same-store sales increase, on a constant currency basis. Same-store sales, on a constant currency basis, increased 3.4% in the prior-year period. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 2.2%. The positive same-store sales were driven by increases in both customer transactions and average ticket.

Net income compared to the prior year's first quarter increased $163.2 million to $232.7 million, and diluted earnings per share increased by 188.2% to $0.98. Excluding the one-time tax benefit, diluted earnings per share for the quarter increased to $0.89. Excluding the current quarter one-time tax benefit and acquisition-related costs from the prior year quarter, earnings per share increased 25.4%, to $0.89 from $0.71.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.81 per share and revenues of $5.10 billion for the first-quarter. Analysts' estimates typically exclude special items.