Earnings preview: Dollar Tree still thriving in recession

Posted Aug 25th 2009 5:30PM by Trey Thoelcke
Filed under: Earnings Reports, Forecasts

Dollar Tree Stores Inc. (NASDAQ: DLTR), the nation's leading operator of dollar stores, is scheduled to discuss its second-quarter 2009 results tomorrow morning in a conference call at 9:00 AM ET. You can catch the live webcast of the call on the company's website.

In the three months that ended in July 31, Dollar Tree saw the retirement of a long-time board member. Analysts surveyed by Thomson Reuters expect the company to report that its earnings grew 22.2% from a year ago to $0.54 per share. Revenue for the quarter is expected to be 11.2% higher to $1.2 billion, in line with preliminary results. Analysts so far expect the third-quarter results to be about the same. The Chesapeake, Va.-based company has topped earnings expectations in recent quarters, by as much as six cents per share.

The long-term EPS growth forecast is 13.6%, which is better than that of rival Family Dollar Stores Inc. (NYSE: FDO). Dollar Tree's earnings multiple is 15.0x. The First Call consensus recommendation is to buy DLTR; TheStreet.com recently pegged it as a top stock, and Zacks expects a positive surprise.

Dollar Tree shares reached a multiyear high of $48.21 today, after rising about 13% in the past three months.

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Tags: DLTR, Dollar Tree, earnings, Family Dollar, FDO, featured