Wells Fargo Adjusts Estimates on Dollar Tree (DLTR); Not All The Bang for The Buck
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Price: $129.39 --0%
Rating Summary:
17 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
17 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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Wells Fargo maintains a 'Market Perform' on Dollar Tree (NASDAQ: DLTR) price target range raised to $52-$55 (from $50-$54)
Analyst, Matt Nemer, said, "Dollar Tree delivered modest upside to our FQ1 EPS estimate and the Street, continuing the trend of smaller earnings beats relative to previous quarters. Comps also came in a bit lighter than the Street, as did Q3 EPS guidance (though both were in line with our estimates). That said, expense leverage in the quarter was impressive and guidance for H2 looks conservative given: (1) Flow through assumptions of incremental revenue to EBIT are below normal for both Q3 and Q4 (3% in Q3 vs. the last two years at 21% and 36% in Q4 vs. the last two years at ~40%, which given the extra week should arguably be even higher), (2) Relief in product costs and slower growth in China and global demand could help gross margin, in fact IMUs were higher in many categories in Q2."
"We are fine-tuning our estimates as follows: FQ3 EPS goes from $0.50 to $0.51, FY2012 EPS goes from $2.45 to $2.54, FY2013 goes from $2.69 to $2.79."
For an analyst ratings summary and ratings history on Dollar Tree click here. For more ratings news on Dollar Tree click here.
Shares of Dollar Tree closed at $49.11 yesterday.
Analyst, Matt Nemer, said, "Dollar Tree delivered modest upside to our FQ1 EPS estimate and the Street, continuing the trend of smaller earnings beats relative to previous quarters. Comps also came in a bit lighter than the Street, as did Q3 EPS guidance (though both were in line with our estimates). That said, expense leverage in the quarter was impressive and guidance for H2 looks conservative given: (1) Flow through assumptions of incremental revenue to EBIT are below normal for both Q3 and Q4 (3% in Q3 vs. the last two years at 21% and 36% in Q4 vs. the last two years at ~40%, which given the extra week should arguably be even higher), (2) Relief in product costs and slower growth in China and global demand could help gross margin, in fact IMUs were higher in many categories in Q2."
"We are fine-tuning our estimates as follows: FQ3 EPS goes from $0.50 to $0.51, FY2012 EPS goes from $2.45 to $2.54, FY2013 goes from $2.69 to $2.79."
For an analyst ratings summary and ratings history on Dollar Tree click here. For more ratings news on Dollar Tree click here.
Shares of Dollar Tree closed at $49.11 yesterday.
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