Piper Jaffray Releases Q2 Earnings Preview Of Dollar Tree Stores (DLTR)

Piper Jaffray published a note, where it reiterates its “overweight” rating on shares of Dollar Tree Stores (DLTR); it has also set a price target of $46.00 on the stock. DLTR plans on releasing its Q2 earnings report on Thursday August 19th. The analysts at Piper Jaffray are estimating Q2 EPS in line with consensus and within the guidance of $0.51-$0.56. Piper Jaffray writes, “We are estimating SSS comp at +4% vs. +6.8% in Q2 F09, near the top end of the +2 to +5% guidance range. We believe DLTR will continue to benefit from the expansion of their cooler program (in 40% of stores currently) and SNAP acceptance (Food Stamps are accepted in 77% of stores).” Although there are concerns of rising Chinese import costs, analysts believe that DLTR has the ability to manage margin in a rising cost environment. Piper Jaffray also believes that DLTR has purchased product through Easter of next year and can manage product to ensure their margin thresholds. Shares of DLTR closed yesterday priced at $41.04.