Dollar Tree Q4 Profit Down, But EPS Rises; Sees Q1, FY EPS Below View

(RTTNews) - Discount stores operator Dollar Tree Inc. (DLTR) said that its fourth-quarter of fiscal 2013 net income declined to $213.0 million from last year's $228.6 million. But, quarterly earnings per share improved to $1.02, from $1.01 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

As previously indicated, fourth quarter and fiscal year 2012 results included one additional week, commensurate with the 53-week retail calendar, which accounted for approximately $125 million incremental sales and $0.08 additional earnings per share.

Consolidated net sales for the thirteen-week fourth quarter 2013 were $2.23 billion, down from $2.25 billion reported for the quarter ended February 2, 2013, which included fourteen weeks. Comparable store sales increased 1.2%, on top of a 2.4% increase for the fourth quarter 2012. Twenty three analysts estimated revenues of $2.28 billion for the quarter.

The company estimates sales for the first quarter of 2014 to be in the range of $1.98 billion to $2.04 billion, based on low single-digit positive comparable-store sales and 6.7% square footage growth. Earnings per share are expected to be in the range of $0.63 to $0.68. Analysts expect the company to report earnings of $0.69 per share and revenues of $2.03 billion for the first-quarter.

For fiscal year 2014, the company estimates sales will range from $8.35 billion to $8.58 billion. This estimate is based on low single-digit positive comparable-store sales, and square footage growth of about 7.0% for the year. Fiscal year 2014 earnings per share are expected to be in the range of $2.91 to $3.13. Street currently is looking for fiscal year 2014 earnings of $3.25 per share on annual revenues of $8.60 billion.

The company's guidance assumes no impact from potential share repurchase activity in 2014, other than the expected completion of share deliveries related to the Accelerated Share Repurchase Program or ASR.