Dollar Tree (DLTR) Stock: Gaining Big on Q3 Earnings Beat

Dollar Tree, Inc. (NASDAQ: DLTR)

Dollar Tree is having an incredibly strong trading session today, and for a very good reason. Early this morning, the company released its earnings report for the third quarter of fiscal year 2016. In the report, the company surprised investors and analysts alike in a very positive way. Below, we’ll talk about what we saw from the report, how the stock is reacting to the news, and what I’m expecting to see from DLTR ahead.

DLTR Reports Strong Financial Results

As mentioned above, Dollar Tree is having an incredibly strong day in the market today after reporting Q3 financial results earlier this morning. In the report, we learned that not only did the company beat estimates with regard to earnings, it showed strong year over year revenue growth. Here’s what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, DLTR definitely did not disappoint. During the third quarter, analysts expected that the company would report earnings in the amount of $0.78 per share. However, the company actually reported earnings in the amount of $0.81 per share, beating analyst expectations by $0.03 per share.
  • Revenue – While DLTR didn’t meet analyst estimates with regard to revenue, the company did show relatively strong year over year growth. During the quarter, analysts expected that the company would generate revenue in the amount of $5.06 billion. However, the company actually reported revenue in the amount of $5.0 billion, just shy of expectations. Nonetheless, this figure still showed strong growth of 1.1% year over year.

Along with the report, Bob Sasser, the CEO at Dollar Tree had the following to offer…

I am encouraged by our continued progress in building the foundation for a larger, stronger, and more profitable Family Dollar business. The stores are cleaner, the values are greater and our customer feedback scores regarding merchandise assortments and in-stocks have improved. As a combined organization, we are uniquely positioned to efficiently grow our businesses to better serve more customers in more markets. We are well-positioned and prepared for the upcoming fourth quarter and holiday selling season.”

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Today, the news surrounding DLTR was overwhelmingly positive. So, it comes as no surprise that we’re seeing strong gains in the value of the stock at the moment. Currently (11:33), DLTR is trading at $89.64 per share after a gain of $7.65 per share or 9.34% thus far today.

What I’m Expecting To See Ahead

Moving forward, I have a relatively bullish opinion of what we can expect to see from Dollar Tree. At the end of the day, the company has built an incredible brand and continues to show that they have the ability to grow. All in all, I’m expecting to see gains ahead.

What Do You Think?

Where do you think DLTR is headed moving forward? Join the discussion in the comments below!