Telsey Advisory Group Forecasts Dollar Tree FY2026 Earnings

Key Points

• Telsey Advisory Group has raised its earnings per share (EPS) estimate for Dollar Tree for FY2026 to $5.66, reflecting an increase from a previous estimate of $5.56, while maintaining an "Outperform" rating and a target price of $130.00.
• In its Q2 earnings report, Dollar Tree beat analysts' expectations, reporting an EPS of $0.77 compared to the consensus estimate of $0.38, and achieved a revenue of $4.57 billion against expectations of $4.46 billion.
• The company has initiated a stock buyback plan to repurchase up to $2.5 billion in shares, indicating confidence from management in the company's current valuation.

Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) - Equities researchers at Telsey Advisory Group raised their FY2026 EPS estimates for shares of Dollar Tree in a note issued to investors on Thursday, September 4th. Telsey Advisory Group analyst J. Feldman now forecasts that the company will earn $5.66 per share for the year, up from their prior forecast of $5.56. Telsey Advisory Group currently has a "Outperform" rating and a $130.00 target price on the stock. The consensus estimate for Dollar Tree's current full-year earnings is $5.39 per share. Telsey Advisory Group also issued estimates for Dollar Tree's Q1 2027 earnings at $1.54 EPS, Q2 2027 earnings at $0.89 EPS, Q4 2027 earnings at $2.84 EPS, FY2027 earnings at $6.62 EPS and FY2028 earnings at $7.55 EPS.

A number of other analysts also recently weighed in on DLTR. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Dollar Tree in a research report on Wednesday. Jefferies Financial Group assumed coverage on shares of Dollar Tree in a research report on Thursday, July 17th. They set a "hold" rating and a $106.00 price objective on the stock. BNP Paribas downgraded shares of Dollar Tree from a "strong-buy" rating to a "hold" rating in a research report on Thursday. Guggenheim reissued a "buy" rating and set a $100.00 price objective on shares of Dollar Tree in a research report on Thursday, June 5th. Finally, Gordon Haskett downgraded shares of Dollar Tree from a "hold" rating to a "reduce" rating and set a $95.00 price objective on the stock. in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $106.95.

Dollar Tree Stock Up 0.9%

Shares of NASDAQ:DLTR traded up $0.87 during midday trading on Friday, reaching $101.12. The company's stock had a trading volume of 5,823,150 shares, compared to its average volume of 4,102,163. The firm has a 50 day moving average of $110.41 and a 200-day moving average of $91.28. The firm has a market capitalization of $20.63 billion, a P/E ratio of -7.45, a PEG ratio of 1.84 and a beta of 0.89. The company has a quick ratio of 0.27, a current ratio of 1.04 and a debt-to-equity ratio of 0.67. Dollar Tree has a 12-month low of $60.49 and a 12-month high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last released its earnings results on Wednesday, September 3rd. The company reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.38 by $0.39. The firm had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.46 billion. Dollar Tree had a negative net margin of 13.46% and a positive return on equity of 23.52%. The company's revenue was up 12.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.67 EPS. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS.

Institutional Trading of Dollar Tree

A number of institutional investors have recently made changes to their positions in DLTR. AQR Capital Management LLC purchased a new stake in shares of Dollar Tree during the 4th quarter valued at about $4,842,000. Mercer Global Advisors Inc. ADV boosted its holdings in shares of Dollar Tree by 6.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 4,656 shares of the company's stock valued at $349,000 after acquiring an additional 292 shares during the last quarter. Cary Street Partners Financial LLC purchased a new stake in shares of Dollar Tree during the 4th quarter valued at about $164,000. Deutsche Bank AG boosted its holdings in shares of Dollar Tree by 4.2% during the 4th quarter. Deutsche Bank AG now owns 911,989 shares of the company's stock valued at $68,344,000 after acquiring an additional 36,474 shares during the last quarter. Finally, Estuary Capital Management LP boosted its holdings in shares of Dollar Tree by 46.3% during the 4th quarter. Estuary Capital Management LP now owns 611,945 shares of the company's stock valued at $45,859,000 after acquiring an additional 193,529 shares during the last quarter. Hedge funds and other institutional investors own 97.40% of the company's stock.

Dollar Tree declared that its Board of Directors has authorized a stock buyback program on Wednesday, July 9th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 11.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Dollar Tree Company Profile

Dollar Tree, Inc operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise.