Why Discount Store Company Dollar Tree's Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
Dollar Tree, Inc. (NASDAQ:DLTR) reported Q3 FY23 sales of $7.31 billion, missing estimates of $7.40 billion, and adjusted EPS of $0.97, below the consensus of $1.01. Same-store sales increased 3.9%, but gross margin declined due to various factors. The company repurchased shares, opened new stores, and is reviewing its Family Dollar portfolio. Q4 sales are projected between $8.6 billion and $8.8 billion, with EPS of $2.58-$2.78. The FY23 sales outlook was revised down to $30.5 billion-$30.7 billion, with EPS of $5.81-$6.01. DLTR shares fell 2.19% in premarket trading.
November 29, 2023 | 1:12 pm
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NEGATIVE IMPACT
Dollar Tree reported lower-than-expected Q3 sales and EPS, revised down its FY23 outlook, and saw a decline in premarket stock price.
The reported earnings miss and downward revision of the FY23 outlook are likely to negatively impact investor sentiment in the short term, leading to a potential decrease in stock price. The premarket decline indicates an immediate negative reaction to the news.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100