Dollar Tree Down after Results

Dollar Tree, Inc. (NASDAQ:DLTR) shares are down over 2% in morning trade after the company warned quarterly earnings and sales will come below Wall Street estimates. The company expects to earn 91-97 cents a share on revenue of $1.65 billion-$1.69 billion. This is below Wall Street forecasts that called for earnings of 98 cents per share and revenue of nearly $1.70 billion.

Fourth quarter results however exceeded analyst estimates. Consolidated net sales for the fourth quarter were $1.95 billion, a 12.8% increase compared to $1.73 billion reported for the quarter ended January 29, 2011 (“fourth quarter 2010”). Comparable store sales increased 7.3%, on top of a 3.9% increase for the fourth quarter 2010. This exceeded analyst estimates that were calling for $1.93 billion in revenues.

Net income rose to $187.9 million, or $1.60 a share, from $162.5 million, or $1.29 a share, a year earlier. This was also ahead of analyst estimates that were targeting $1.58 a share in earnings.

For fiscal year 2011, the Company’s consolidated net sales were $6.63 billion, a 12.7% increase compared with 2010 sales of $5.88 billion. Comparable store sales increased 6.0%, on top of a 6.3% increase last year. Diluted earnings per share were $4.03, an increase of 30.0% from diluted earnings per share of $3.10 in 2010.

“I am pleased to report that our business momentum remains strong as Dollar Tree’s sales, operating margin, and earnings continued to expand in the fourth quarter,” said President and CEO Bob Sasser. “Dollar Tree is focused on providing a broad, balanced assortment of merchandise that customers need and want at surprising values. Our stores are clean, bright, convenient, seasonally relevant and fun to shop. We are looking forward to an exciting Spring and Easter selling season.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.