Source: MarketersMedia

Press Release: Dollar Tree : Post Earnings Coverage as Dollar Tree's Q4 Earnings Surged 40.2% Y-o-Y

Upcoming AWS Coverage on Fred'sLONDON, UK / ACCESSWIRE / March 17, 2017 / Active Wall St. announces its post-earnings coverage on Dollar Tree, Inc. (NASDAQ: DLTR). The Company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 01, 2017. The Chesapeake, Virginia-based Company's net sales grew 5.0% y-o-y, while diluted EPS surged 40.2% y-o-y. Register with us now for your free membership at: of Dollar Tree's competitors within the Discount, Variety Stores space, Fred's, Inc. (NASDAQ: FRED), is estimated to report earnings on March 22, 2017. AWS will be initiating a research report on Fred's in the coming days.Today, AWS is promoting its earnings coverage on DLTR; touching on FRED. Get our free coverage by signing up to: ReviewedDollar Tree reported net sales of $5.64 billion in Q4 FY16, which came in above $5.37 billion recorded in Q4 FY15. Net sales numbers for Q4 FY16 also beat market consensus estimates of $5.63 billion. During the reported quarter, enterprise same-store sales increased 1.2% y-o-y on a constant currency basis, while the same-store sales increase was 1.3% y-o-y after adjusting for the impact of Canadian currency fluctuations.The discount variety stores' net income increased during Q4 FY16 to $321.8 million, or $1.36 per diluted share, from $229.0 million, or $0.97 per diluted share, in Q4 FY15. Additionally, the earnings in the reported quarter included expenses of $0.03 per share pertaining to debt prepayment. Therefore the Company's adjusted earnings for Q4 FY16 were $1.39 per diluted share, which came in above Wall Street's expectations of $1.33 per diluted share.For full year FY16, the Company's net sales stood at $20.72 billion, up 33.7% from $15.50 billion in FY15. The Company's net income surged during FY16 to $896.2 million, or $3.78 per diluted share, from $282.4 million, or $1.26 per diluted share, in FY15.During Q4 FY16, the Company inaugurated 104 stores, expanded or relocated 27 stores, and pulled shutter on 55 stores. Additionally, the Company opened eight former Family Dollar store locations as new Dollar Tree stores. Retail selling square footage as at the end of FY16 was approximately 112.4 million square feet.Operating MetricsFor Q4 FY16, the Company's gross profit came in at $1.81 billion, or 32.1% of net sales, compared to $1.65 billion, or 30.8% of net sales, in the year ago same period. The Company's selling, general, and administrative expenses incurred during Q4 FY16 were $1.22 billion, or 21.7%, compared to $1.18 billion, or 22.0% of net sales in Q4 FY15. Additionally, the Company's operating income rose to $586.5 million, or 10.4% of net sales, in Q4 FY16 from $469.7 million, or 8.8% of net sales, in the prior year's comparable period.Segment PerformanceDuring Q4 FY16, net sales at Dollar Tree were $2.90 billion compared to $2.69 billion in the year ago corresponding quarter. The segment's gross profit increased in Q4 FY16 to $1.09 billion, or 37.5% of segment sales, from $978.9 million, or 36.4% of segment sale, in Q4 FY15. Furthermore, the segment's operating income during Q4 FY16 was $476.1 million, or 16.4% of segment sales, compared to $404.4 million, or 15.0% of segment sales, in Q4 FY15.Family Dollar's net sales increased to $2.74 billion in Q4 FY16 from $2.68 billion in the previous year's comparable period. In Q4 FY16, the segment's gross profit stood at $718.5 million, or 26.3% of segment sales, up from $673.7 million, or 25.2% of segment sale, in Q4 FY15. Additionally, the segment's operating income for the reported period came in at $110.4 million, or 4.0% of segment sales, compared to $65.3 million, or 2.4% of segment sales, in Q4 FY15.Cash Flow and Balance SheetIn the year ended January 28, 2017, Dollar Tree's net cash provided by operating activities surged to $1.67 billion from $802.5 million in FY15. As on January 28, 2017, the Company had cash and cash equivalents balance of $866.4 million compared to a balance of $736.1 million as on January 30, 2016. The Company reported long-term obligation of $6.17 billion in its books of accounts as on January 28, 2017, versus $7.24 billion as on January 30, 2016. Furthermore, net merchandise inventories stood at $2.87 billion as of January 28, 2017, compared to $2.89 billion as of January 30, 2016.Earnings OutlookIn its guidance for full year FY17, Dollar Tree expects consolidated net sales to range between $21.94 billion and $22.33 billion with flat to low single-digit increase in same-store sales and 3.9% y-o-y square footage growth. Diluted earnings per share for FY17 are expected to be in the range of $4.20 to $4.56.For Q1 FY17, consolidated net sales are estimated to be in the range of $5.26 billion to $5.35 billion with flat to low single-digit increase in same-store sales. Furthermore, the Company forecasts diluted earnings per share during Q1 FY17 to be between $0.91 and $0.98.Stock PerformanceAt the close of trading session on Thursday, March 16, 2017, Dollar Tree's stock price climbed 1.30% to end the day at $75.53. A total volume of 3.59 million shares were exchanged during the session, which was above the 3-month average volume of 2.85 million shares. Shares of the company have a PE ratio of 19.96. Additionally, the stock currently has a market cap of $17.94 billion.Active Wall Street:Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.AWS has not been compensated; directly or indirectly; for producing or publishing this document.PRESS RELEASE PROCEDURES:The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected] Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. 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Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.NOT AN OFFERINGThis document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:Email: [email protected] number: 1-858-257-3144Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United KingdomCFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.SOURCE: Active Wall StreetReleaseID: 457534

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Dollar Tree owns and operates a supermarket chain that sells household products, gifts, toys, stationery items, snacks, ... Read more