Dollar Tree CEO Bob Sasser said his company is progressing after its acquisition of Family Dollar a year ago, but both Sasser and Dollar General CEO Todd Vasos stated that a challenging retail environment hurt sales.
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Dollar General said net income was $307 million, or $1.08 per share, in the second quarter, up from $282 million, or $0.95 per share, in the previous year period. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.09 per share.
Dollar Tree Inc. has a 12 month low of $60.31 and a 12 month high of $99.93.
Revenue for the quarter reached $5 billion, up from $3.01 billion in the prior same period thanks to the company’s acquisition of Family Dollar which it purchased for $9.2 billion past year. (NASDAQ:DLTR) will report earnings per share of $0.73 in their quarterly report and it is expected to announce the company’s results on 8/25/2016 Before Market Open.
Dollar General’s net sales rose 5.8 percent to $5.39 billion, but missed the average analyst estimate of $5.5 billion, according to Thomson Reuters I/B/E/S. (NASDAQ:DLTR). The most expectant earnings per share estimate of the stock is set at $4.05 while the conservative estimates kept at $3.65 over the current year. 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. Street is looking for an EPS of $0.76 on revenue of $5.13 billion.
Several research analysts have issued reports on DLTR shares. Analysts expected earnings of $1.09 per share. Dollar General said an increase in average transaction amount was offset by declining traffic. The positive same-store sales growth was driven by increases in customer count and average ticket.
Dollar General also reiterated its full-year guidance for earnings per share falling between 10% and 15%.
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The company now projects capital expenditures for fiscal 2016 in a range of $580 million to $630 million to reflect the purchase of 42 Walmart Express stores, compared to the prior forecast of $550 million to $600 million. The board also authorized another $1 billion worth of share repurchases to extend the authorization to about $1.4 billion with no expiration date. Now the company’s dividend is at 2.16, whereas, the Dividend Yield stood at 2.02 Percent.
