Dollar Tree (NASDAQ:DLTR) Releases FY 2025 Earnings Guidance

Key Points

• Dollar Tree has provided earnings guidance for FY 2025, estimating EPS between 5.320-5.720, which is slightly below the consensus estimate of 5.520.
• The company announced a $2.50 billion share buyback plan, indicating confidence in its stock valuation.
• Dollar Tree's stock opened at $100.47, with a market cap of $20.49 billion and a twelve-month low of $60.49 and high of $118.06.

Dollar Tree (NASDAQ:DLTR - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.320-5.720 for the period, compared to the consensus estimate of 5.520. The company issued revenue guidance of $19.3 billion-$19.5 billion, compared to the consensus revenue estimate of $19.4 billion.

Dollar Tree Stock Performance

Shares of Dollar Tree stock opened at $100.47 on Thursday. The stock has a market cap of $20.49 billion, a PE ratio of -7.40, a price-to-earnings-growth ratio of 1.74 and a beta of 0.85. The business has a fifty day simple moving average of $99.86 and a 200-day simple moving average of $96.63. 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 issued its earnings results on Wednesday, September 3rd. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.38 by $0.39. The business had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.46 billion. Dollar Tree had a positive return on equity of 23.52% and a negative net margin of 13.46%.Dollar Tree's revenue was up 12.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.67 earnings per share. Dollar Tree has set its FY 2025 guidance at 5.320-5.720 EPS. On average, sell-side analysts anticipate that Dollar Tree will post 5.39 EPS for the current fiscal year.

Dollar Tree announced that its Board of Directors has initiated a share repurchase plan on Wednesday, July 9th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the company to buy up to 11.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DLTR. New Street Research set a $103.00 target price on shares of Dollar Tree in a research note on Thursday, October 16th. Telsey Advisory Group reissued an "outperform" rating and set a $130.00 price objective on shares of Dollar Tree in a research report on Thursday, October 16th. Morgan Stanley lifted their price objective on Dollar Tree from $96.00 to $105.00 and gave the company an "equal weight" rating in a research report on Friday, September 5th. Weiss Ratings reissued a "sell (d-)" rating on shares of Dollar Tree in a research report on Wednesday, October 8th. Finally, The Goldman Sachs Group set a $133.00 price objective on Dollar Tree and gave the company a "buy" rating in a research report on Monday. Nine investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Dollar Tree has a consensus rating of "Hold" and an average price target of $110.00.

Insider Activity

In related news, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $100.32, for a total transaction of $118,879.20. Following the completion of the sale, the director owned 4,089 shares in the company, valued at $410,208.48. This represents a 22.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Robert Aflatooni sold 1,260 shares of the stock in a transaction that occurred on Friday, October 17th. The shares were sold at an average price of $94.70, for a total value of $119,322.00. Following the sale, the insider owned 21,402 shares of the company's stock, valued at approximately $2,026,769.40. The trade was a 5.56% decrease in their position. The disclosure for this sale can be found here. 6.60% of the stock is currently owned by insiders.

Institutional Trading of Dollar Tree

Hedge funds have recently added to or reduced their stakes in the business. Focus Partners Wealth increased its holdings in shares of Dollar Tree by 2.0% in the first quarter. Focus Partners Wealth now owns 10,646 shares of the company's stock worth $799,000 after acquiring an additional 213 shares in the last quarter. Vident Advisory LLC increased its holdings in shares of Dollar Tree by 3.3% in the second quarter. Vident Advisory LLC now owns 9,606 shares of the company's stock worth $951,000 after acquiring an additional 304 shares in the last quarter. Evergreen Capital Management LLC increased its holdings in shares of Dollar Tree by 12.5% in the second quarter. Evergreen Capital Management LLC now owns 3,664 shares of the company's stock worth $363,000 after acquiring an additional 406 shares in the last quarter. MUFG Securities EMEA plc bought a new stake in shares of Dollar Tree in the second quarter worth about $58,000. Finally, Snowden Capital Advisors LLC increased its holdings in shares of Dollar Tree by 29.7% in the second quarter. Snowden Capital Advisors LLC now owns 4,759 shares of the company's stock worth $471,000 after acquiring an additional 1,090 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

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.

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