Dollar Tree Q2 Adj. Profit Misses View, But Revenues Top; Updates FY14 Outlook

(RTTNews) - Discount retailer Dollar Tree Inc. (DLTR) reported that its net income for its second fiscal quarter ended August 2, 2014 decreased to $121.5 million, from $124.7 million in the prior year quarter. But, earnings per share increased to $0.59 from $0.56 last year.

Excluding acquisition-related costs, net income increased approximately $1.4 million to $126.1 million and earnings per share increased 8.9% to $0.61. Analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales increased 9.5% to $2.03 billion from $1.85 billion in the prior year's second quarter. Wall Street expected revenues of $2.01 billion for the quarter.

Consolidated comparable store sales increased 4.5% on a constant currency basis. Adjusted for the impact of Canadian currency fluctuations, the comparable store sales increase was 4.4%.

The Company estimates sales for the third quarter of 2014 to range from $2.02 billion to $2.07 billion, based on low- to mid-single digit positive comparable store sales. Earnings per share are estimated to range from $0.61 to $0.66, excluding acquisition-related costs. Analysts expect the company to report earnings of $0.66 per share and revenues of $2.05 billion for the third-quarter.

The Company's full-year guidance has been adjusted for actual first half performance, and its outlook for the back half is unchanged from the original guidance provided on February 26, 2014.

Full-year 2014 sales are now estimated to range from $8.44 billion to $8.55 billion. This estimate is based on a range of low- to low-mid-single digit positive comparable store sales. Earnings per share, which includes $0.02 per share of second quarter acquisition-related costs, are expected to range from $2.94 to $3.06, excluding third and fourth quarter acquisition-related costs. Wall Street currently is looking for fiscal year 2014 earnings of $3.13 per share on annual revenues of $8.51 billion.

The company said in May that it expected earnings per share for fiscal 2014 to be in the range $2.94 to $3.12, on projected annual sales between $8.37 billion to $8.54 billion, based on a range of low-single digit positive comparable store sales.