Dollar Tree Inc (NASDAQ:DLTR) Stock Technicals Hit Strength

The consensus on Dollar Tree (DLTR) based on 16 analyst recommendation on the company stock is 1.81, which is interpreted as a Buy recommendation. The $1.99 billion increase was the result of an incremental $1.80 billion in net sales from Family Dollar stores, sales from new Dollar Tree stores, and a 1.2% same-store sales increase, on a constant currency basis. (NASDAQ:DLTR), which posted revenue of $5 billion, missing Street’s consensus by $90 million.

Estimates: Profit is expected to rise 15% to $1.09 a share on 8% sales growth to $5.5 billion. More than 13 million shares of Dollar General have already changed hands today, up considerably from the stock’s average trading volume of just 2.5 million shares per day. The stock has increased 29 percent in the last 12 months.

Dollar General said prices for milk were down about 8 percent and for eggs over 50 percent.

On 18 August, Dollar Tree, Inc.

Like rival Dollar Tree Inc., Dollar General has benefited over the past year from rising wages among core customers, who in the second quarter saw their wages increase at the best clip since the recession.

Despite weak performance, Dollar Tree CEO Bob Sasser assured investors that the company is working to translate strong sales growth into improved margins.

After stealing money from one of the cash registers, the suspect took the employee to the store office where he stole more money.

Discount retailers Dollar General Corp. and Dollar Tree Inc. faced economic headwinds in the second quarter that put pressure on sales, executives from both companies said Thursday. Dollar Tree acquired rival Family Dollar a year ago for about $9 billion. The liquidity measure in recent quarter results of the firm was recorded 1.50 as current ratio, on the other side the debt to equity ratio was 0.15, and long-term debt to equity ratio remained 0.15.

Similarly, for the full year, the retailer expects EPS to be $3.67-$3.82 on revenue of $20.69-$20.87 billion, down from its previous range of $20.79 – $21.08 billion.

Same-store sales increased 0.7%, driven by positive results in the consumables category and the opening of the new stores. For the prior quarter revenue for the stock hit $5.37B, with EPS at $1.01.

The company’s board of directors also authorized an additional $1.0 billion for share repurchases, increasing the total authorization to around $1.4 billion.

Dollar Tree opened 156 outlets, expanded or relocated 52 outlets, and shuttered 17 outlets during the quarter.

The company was also able to grow its gross margin by 190 base points (to 30.3%), which, in addition to lower SG&A expenses (relative to the company’s sales) allowed for a huge operating margin increase from 4.1% to 7.1%.