Shares of Dollar Tree Inc (DLTR) registered their largest single-session gain in 12 weeks on Thursday, after the company reported higher-than-anticipated revenue and earnings that came in line with Wall Street estimates during the first quarter.
However, quarterly same-store sales at Dollar Tree stores fell short of estimates.
Dollar Tree shares closed higher for the second time in the past nine trading sessions on NASDAQ on Thursday. It has also been the sharpest daily surge since March 6th. The stock went up 3.14% ($2.99) to $98.31, after touching an intraday high at $100.81, or a price level not seen since May 22nd ($101.22).
Shares of Dollar Tree Inc have surged 8.85% so far in 2019 compared with an 11.25% gain for the benchmark index, S&P 500 (SPX).
In 2018, Dollar Tree’s stock went down 15.83%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.
Total revenue went up to $5.81 billion during the first quarter from $5.55 billion a year earlier. Analysts on average had expected revenue of $5.78 billion.
Same-store sales at Dollar Tree stores were reported to have surged 2.5% year-on-year during the first quarter ended on May 4th. In comparison, the median forecast by analysts had pointed to a 2.9% growth in same-store sales.
Meanwhile, net income attributable to shareholders went up to $267.9 million ($1.12 per share) during the first quarter from $160.5 million ($0.67 per share) in the year-ago period.
Excluding special items, the company earned $1.14 per share during the first quarter, which matched a consensus of estimates.
On the other hand, the retailer revised down its full-year earnings forecast to a range of $4.77 to $5.07 per share from a previously expected range of $4.85 to $5.25 per share. Market consensus points to full-year earnings of $5.30 per share. The company’s guidance reflects the expectation that Section 301 tariffs will be 25% on List 1, 2 and 3 goods.
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Dollar Tree Inc’s stock price, have a median target of $112.00, with a high estimate of $120.00 and a low estimate of $100.00. The median estimate represents a 13.93% upside compared to the closing price of $98.31 on May 30th.
The same media also reported that 13 out of 26 surveyed investment analysts had rated Dollar Tree Inc’s stock as “Buy”, while 9 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Dollar Tree Inc (DLTR) are presented as follows:
Central Pivot Point – $98.78
R1 – $100.86
R2 – $103.31
R3 – $105.39
R4 – $107.48
S1 – $96.33
S2 – $94.25
S3 – $91.80
S4 – $89.36
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