Dollar Tree, Inc. (NASDAQ: DLTR) is likely to register top-line growth when it reports second-quarter fiscal 2024 results on Sept. 4. The Zacks Consensus Estimate for revenues is pegged at $8.5 billion, indicating an improvement of 2.5% from the prior-year quarter's figure.
The bottom line of the discount variety stores retailer is expected to have risen year over year. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.03 per share, indicating growth of 13.2% from the year-ago period's figure. The consensus mark has moved down by a penny in the past seven days.
The company has a trailing four-quarter negative earnings surprise of 1.3%, on average. In the last reported quarter, the Chesapeake, VA-based company reported earnings in line with the Zacks Consensus Estimate.
Dollar Tree, Inc. Price and EPS Surprise
Dollar Tree, Inc. price-eps-surprise | Dollar Tree, Inc. Quote
As investors prepare for Dollar Tree's fiscal second-quarter earnings, the question emerges regarding earnings beat or miss.
Dollar Tree's Zacks Model Findings
Our proven model does not conclusively predict an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that's not the case here.
Dollar Tree has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.94%.
Trends to Watch Before Dollar Tree's Big Reveal
Dollar Tree's second-quarter fiscal 2024 results are expected to reflect continued pressures from soft demand for discretionary items owing to reduced spending trends among low-income consumers. Due to these trends, management expected elevated shrink and unfavorable mix to remain headwinds in the first half of fiscal 2024. Additionally, the company has been facing headwinds related to product cost inflation. These factors are expected to have collectively marred the top and bottom lines in the fiscal second quarter.
On the last reported quarter's earnings call, management expected net sales for the Family Dollar segment to drop 1-3% year over year for the fiscal second quarter. Additionally, ...
