Dollar Tree beats profit estimates, shares surge 6%
Dollar Tree Inc. shares rose 6% in premarket trade, after the company reported better-than-expected profit for its third quarter. The retailer said it had net income of $171.6 million or 72 cents a share, up from $81.9 million, or 35 cents a share, in the year-earlier period. Earnings include a 9 cents expense for debt refinancing. The FactSet consensus was for EPS of 78 cents. Sales rose 1.1% to $5.00 billion, compared with a FactSet consensus of $5.064 million. Same-store sales adjusted for the impact of the Canadian dollar rose 1.8%, above the FactSet consensus for a rise of 1.4%. The company said it expects fourth-quarter sales to range from $5.59 billion to $5.69 billion, compared with a current FactSet consensus of $5.597 billion. EPS is expected to range from $1.24 to $1.33, wrapping around the current FactSet consensus of $1.29. Shares had gained 6.2% in the year so far, while the S&P 500 has gained 7.6%.
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