Dollar Tree Inc. (DLTR) shares jumped more than 10 percent in the pre-market trading Tuesday after the discount store operator announced its financial results for the third quarter that beat the consensus forecast.
The Chesapeake, Virginia-based company reported earnings of $330 million, or $1.39 per share for the three months ended October 31, up from $255.8 million, or $1.08 per share in the comparable period last year. Analysts polled by FactSet were looking for a profit of $1.15 per share
Revenue for the quarter came in at $6.177 per share, as compared to $5.746 billion in the year-ago quarter, and above the consensus forecast of $6.129 billion.
Speaking on the quarterly performance, CEO Mike Witynski said “I am incredibly proud of our team’s efforts to continue serving customers effectively, while driving operational improvements in both banners through this dynamic retail environment.”
Same-store sales jumped by 5.1 percent on a year-over-year basis, beating the analysts’ average forecast of 4.7 percent growth.
Dollar Tree repurchased 2,154,304 shares of its common stock for $200 million during the third quarter. It plans to buy an additional $600 million worth of stock according to its share repurchase program.
Looking forward, the company expects to complete its plan of nearly 480 new store openings by the end of this year. It also plans to complete renovations of around 750 Family Dollar H2 stores in the same period.
Dollar Tree (NASDAQ: DLTR) stock hit a new 52-week high of $ 109.104 this morning following strong quarterly results. DLTR stock has seen many ups and downs in the current fiscal year due to the pandemic. Overall, the stock has jumped more than 15 percent on a year-to-date basis, including today’s gain. The company’s market value stands at approx. $25.862 billion according to the current trading price.
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