UPDATE: Dollar Tree Q3 Profit Beats Estimates

Dollar Tree DLTR reported upbeat earnings for its fiscal third quarter. The Chesapeake, Virginia-based company posted quarterly earnings of $133 million, or $0.64 per share, versus a year-ago profit of $125.4 million, or $0.58 per share. Excluding items, the company earned $0.69 per share. Its revenue climbed 11% to $2.1 billion in the period. However, analysts were estimating earnings of $0.64 per share on revenue of $2.06 billion. The company's same-store sales rose 5.9% in the quarter. Gross profit rose 9.9% to $725.3 million versus $659.9 million. Bob Sasser, Chief Executive Officer, stated, "I am extremely pleased with our third quarter performance. Excluding acquisition costs, we delivered a Company-record third quarter operating margin of 11.2%. Our 5.9% same-store sales growth was our strongest comp since 2011, and represented our 27th consecutive quarter of positive same-store sales. These results validate our value enhancement initiatives targeted to attract new, and retain current, customers. Our store teams are well-prepared and our shelves are well-stocked with incredible values for the upcoming holiday season.” For the current quarter, Dollar Tree projects earnings of $1.07 to $1.14 per share, versus analysts' estimates of $1.13 per share. It projects revenue of $2.39 billion to $2.46 billion, versus expectations of $2.46 billion. Dollar Tree projects full-year earnings of $2.97 to $3.04 per share, on revenue of $8.52 billion to $8.58 billion. Dollar Tree shares rose 1.03% to close at $62.63 yesterday.