Dollar General reported mixed results upon the close of its financial Q2 for fiscal year 2016, missing on profit and sales expectations but seeing a boost in other areas like diluted earnings per share. Analysts surveyed by Zacks had expected revenue of $5.1 billion.
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The $2 billion increase in revenue was the result of an incremental $1.8 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. The company’s revenue for the quarter was up 66.0% compared to the same quarter a year ago. Apple Inc. (NASDAQ:AAPL) quarterly performance is 7.71% while its price to sale ratio is 2.66 and price to book ratio is 4.63. Five analysts surveyed by Zacks expected $5.13 billion.
Mr. Lasser trimmed his price target on Dollar Tree stock to $100 from $108, and reiterated Buy stance. 19 Analysts reported that the Price Target for Dollar Tree, Inc. might touch $110 high while the Average Price Target and Low price Target is $97.96 and $76 respectively.
Downgrades occur when analysts feel that the future prospects for the stock have weakened from the original recommendation, usually due to a material and fundamental change in the company’s operations, future outlook or industry. (NASDAQ:DLTR) stock, which he believes is adversely impacted by its bigger-in-size rival, Wal-Mart Stores, Inc. On the other hand Dollar Tree was able to lower its long term debt by $1.1 billion over the last twelve months, thus the balance sheet has been getting better over the previous year. There was another key research note provided by Topeka Capital Markets on Tuesday May 24, 2016. The Stock has its 52-week High of $99.93 and 52-Week Low of $60.31 and it touched its 52-week high on Aug 11, 2016 and 52-Week Low on Oct 14, 2015. On Dec 1, 2015 the shares registered one year high at $47.32 and the one year low of $33.62 was seen on Jan 14, 2016.
Even though neither company beating Wall Street estimates, both showed good improvement from past year, but the main issues with both companies are the challenges that lie ahead.
“(Family Dollar) stores are cleaner, the values are greater and our merchandise assortments are improving. Company gross margin stands at 29.70% whereas its return on investment (ROI) is 7.40%. Recently, investment analysts covering the stock have updated the mean rating to 2.3.
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Over the last twelve months Dollar Tree, Inc.’s stock price has increased by 9.94% from 77.34 to 85.03. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 10.72%. Relative volume is ratio between current volume and 3-month average value, intraday adjusted.
