Nasdaq Stock Dollar Tree, Inc. (NASDAQ:DLTR) shares gained 2.22% to $78.38 on Wednesday after they reported a better than expected earnings and revenue for the fourth quarter.
Dollar Tree shares performance
The discount chain performed better than the analysts had expected. Revenue stood at $5.64 against the FactSet consensus of $5.62 billion. The share recorded at $1.36 per share against the estimated $1.31 per share. Analysts projected an increase 1.8% in same store sales but they rose at 1.2% during the period. Dollar Tree same store sales rose at 2.3% and the Family Dollar (FDO) same store sales rose grew at 0.2%. These sales were driven by improved customer count and the average ticket.
In the current quarter, the company projects earnings between 91% and 98% per share in revenue of between $ 5.26 billion and $5.35 billion. Analysts predict earnings of $1.11 per share on revenue of $5.32 billion in the first quarter. Executives working hand in hand with the analysts are attributing the sales volume to the high cost of fuel. Diesel price is approximated at $0.02 per share in the first quarter.
Estimated earnings per share for the whole year will play between $4.20 and $4.56 on revenue of value between $21.94 billion and $22.33 billion. 2017 earnings projection fall at $4.52 per share on revenue of $ 21.88 billion according to Wall Street.
Who look out for
Dollar Tree is wary of Wal-Mart Stores Inc (NYSE:WMT) intentions to lower prices. Another firm to watch out for is Target Corporation (NYSE:TGT) who are also operating in the same sector. The firm is however, confident in its operations to retain and attract customers to its stores. Target share’s ratings decreased to market perform’ from ‘outperform’ on Wednesday. The price target lowered from $78 to $58. This occurred as the firm sees declined visibility in its turnaround. The share prices have risen slightly on Wednesday morning. Walmart is working towards increasing its sales. They have already launched a scan and go on Alphabet Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) iOS devices in hope of having a cashless purchase. Scan and go provides a platform that customers scan items while purchasing and pay via the app.