Dollar Tree (DLTR) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Dollar Tree (DLTR) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ending January 2025, with the consensus outlook indicating potential impacts on its near-term stock price [1][3]. Earnings Expectations - The consensus estimate for Dollar Tree's quarterly earnings is $2.20 per share, reflecting a year-over-year decrease of 13.7$8.23 billion, down 4.7% from the previous year [3]. - The consensus EPS estimate has been revised 0.01% lower in the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Dollar Tree is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.99%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - In the last reported quarter, Dollar Tree was expected to post earnings of $1.07 per share but exceeded expectations with earnings of$1.12, resulting in a surprise of +4.67% [12]. - Over the past four quarters, Dollar Tree has only beaten consensus EPS estimates once [13]. Conclusion - Dollar Tree is viewed as a compelling candidate for an earnings beat, but investors are advised to consider other factors that may influence stock performance beyond earnings results [16].