Dollar Tree Q3 EPS Forecast Decreased by Zacks Research

Key Points

• Zacks Research cut Dollar Tree’s Q3 2027 EPS forecast to $0.88 from $1.38, while projecting full-year 2027 EPS of $7.95.
• Dollar Tree’s latest quarter exceeded expectations, with EPS of $2.70 versus the $1.15 consensus and revenue of $4.89 billion, up 7% year over year. Management’s Q3 2026 EPS guidance is $0.80–$0.95, with full-year guidance of $7.70–$8.05.
• Analyst sentiment remains mixed: Dollar Tree has a consensus “Hold” rating and an average price target of $131.68. The company also authorized a $2.5 billion share repurchase program, covering up to 10.7% of outstanding shares.

Dollar Tree, Inc. (NASDAQ:DLTR - Free Report) - Analysts at Zacks Research cut their Q3 2027 earnings estimates for Dollar Tree in a research report issued on Thursday, September 10th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.88 for the quarter, down from their prior forecast of $1.38. The consensus estimate for Dollar Tree's current full-year earnings is $7.95 per share. Zacks Research also issued estimates for Dollar Tree's FY2027 earnings at $7.95 EPS and Q2 2029 earnings at $2.01 EPS.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The business had revenue of $4.89 billion during the quarter, compared to the consensus estimate of $4.86 billion. During the same period in the prior year, the firm earned $0.77 EPS. Dollar Tree's quarterly revenue was up 7.0% compared to the same quarter last year. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS.

Several other brokerages also recently issued reports on DLTR. Raymond James Financial reaffirmed an "outperform" rating and issued a $145.00 price target on shares of Dollar Tree in a research report on Friday, August 28th. The Goldman Sachs Group reissued a "neutral" rating and set a $131.00 price objective on shares of Dollar Tree in a research report on Monday, August 31st. Benchmark initiated coverage on Dollar Tree in a research note on Wednesday, July 8th. They set a "hold" rating for the company. Evercore raised Dollar Tree from a "hold" rating to an "outperform" rating in a report on Wednesday, July 8th. Finally, Piper Sandler raised their target price on Dollar Tree from $114.00 to $121.00 and gave the company a "neutral" rating in a report on Monday, August 31st. Eleven investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Dollar Tree has a consensus rating of "Hold" and an average price target of $131.68.

Dollar Tree Stock Performance

Shares of DLTR opened at $118.17 on Monday. The company has a market capitalization of $22.17 billion, a PE ratio of 14.43, a price-to-earnings-growth ratio of 1.09 and a beta of 0.66. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39. Dollar Tree has a one year low of $84.71 and a one year high of $142.40. The company's fifty day moving average price is $127.27 and its 200 day moving average price is $114.54.

Dollar Tree announced that its Board of Directors has initiated a stock buyback plan on Thursday, July 2nd that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 10.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, insider Robert Aflatooni sold 2,500 shares of the business's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $126.01, for a total transaction of $315,025.00. Following the transaction, the insider owned 24,820 shares in the company, valued at approximately $3,127,568.20. The trade was a 9.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Stephanie Stahl sold 1,185 shares of the company's stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $131.47, for a total transaction of $155,791.95. Following the transaction, the director directly owned 4,089 shares of the company's stock, valued at $537,580.83. This represents a 22.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 7.10% of the company's stock.

Institutional Trading of Dollar Tree

Hedge funds have recently modified their holdings of the company. Sequoia Financial Advisors LLC increased its position in shares of Dollar Tree by 155.7% during the second quarter. Sequoia Financial Advisors LLC now owns 32,295 shares of the company's stock valued at $3,906,000 after purchasing an additional 19,665 shares during the period. Tidal Investments LLC raised its stake in shares of Dollar Tree by 144.0% in the second quarter. Tidal Investments LLC now owns 67,337 shares of the company's stock valued at $8,144,000 after purchasing an additional 39,743 shares in the last quarter. WINTON GROUP Ltd bought a new position in Dollar Tree in the second quarter worth $9,466,000. Cidel Asset Management Inc. lifted its position in Dollar Tree by 111.9% in the second quarter. Cidel Asset Management Inc. now owns 5,996 shares of the company's stock worth $725,000 after purchasing an additional 3,167 shares during the period. Finally, Capital Analysts LLC acquired a new stake in Dollar Tree during the second quarter worth $56,000. Institutional investors own 97.40% of the company's stock.

Key Stories Impacting Dollar Tree

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Zacks Research increased its FY2028 EPS forecast to $7.89 from $7.67 and raised its FY2029 forecast to $8.86 from $8.62. Analysts also lifted estimates for Q1 2028, Q2 2028, Q4 2028 and Q1 2029, signaling stronger longer-term earnings expectations.
• Neutral Sentiment: The revisions leave Zacks’ projected FY2028 earnings only modestly above the current-year consensus estimate of $7.84. The changes may support investor confidence, but they do not represent a formal company guidance update.
• Neutral Sentiment: Reported short-interest data showed zero shares short and a zero-day days-to-cover ratio, providing no meaningful indication of short-seller pressure or potential short-covering demand.
• Negative Sentiment: Zacks Research lowered its Q4 2027 EPS forecast to $2.63 from $2.76 and cut its Q3 2028 forecast to $1.39 from $1.53. These reductions point to possible pressure on earnings in specific reporting periods.
• Negative Sentiment: An opinion article titled “3 reasons to avoid DLTR and 1 stock to buy instead” reflects a bearish view of Dollar Tree, although it is commentary rather than a new operating or financial disclosure. 3 reasons to avoid DLTR and 1 stock to buy instead

About Dollar Tree

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, seasonal items, toys, health and personal-care products, and other general merchandise. Product assortments may include both nationally recognized brands and private-label goods.

The company traces its origins to discount retail operations established in the 1950s and adopted the Dollar Tree name in the early 1990s.

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