Dollar Tree (DLTR) Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect

Dollar Tree (DLTR) is scheduled to announce its results for the first quarter of 2025 tomorrow, June 4. The stock has gained 21.75% so far this year, fueled by the discount store chain’s moves to strengthen its business and the decision to sell Family Dollar, which had been impacting the company’s overall results in recent years. Wall Street analysts expect the company to report earnings of $1.21 per share, representing a 15.4% decline year-over-year.

Also, revenues are expected to decrease by 40% from the year-ago quarter to $4.54 billion, according to data from the TipRanks Forecast page. It’s important to note that Dollar Tree has missed EPS estimates in five of the past nine consecutive quarters.

Family Dollar Sale Marks Dollar Tree’s Renewed Growth Focus

In the fourth quarter of 2024, the company announced that it is selling its Family Dollar business for $1.007 billion. This deal is set to be completed in the second quarter of 2025. Experts have praised this decision, saying that by selling Family Dollar, the company can better focus on growing its main business and explore new investment opportunities.

According to Main Street Data, Dollar Tree reported net sales of $5.0 billion in Q4, marking a 0.7% increase year-over-year.

Top Analyst’s Views on DLTR Ahead of Q1 Results

Heading into the Q1 results, several analysts have raised their price targets for Dollar Tree stock. Among them is Truist Financial analyst Scot Ciccarelli, who lifted his price target for DLTR to $100 from $89 while keeping a Buy rating. He cited improving business trends, the planned sale of Family Dollar, and steady early-quarter sales as key reasons for the upward revision.

The five-star analyst continues to expect a 3.5% same-store sales increase for Q1 and believes there could be more upside if the current sales momentum continues. He also raised his valuation multiple from 17x to 19x forward earnings, showing greater confidence in Dollar Tree’s near-term performance and long-term growth potential.

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting a 9.80% move in either direction.

What Is the Price Target for DLTR Stock?

Wall Street has a Moderate Buy consensus rating on Dollar Tree stock based on six Buys, 11 Holds, and one Sell recommendation. The average DLTR stock price target of $86.18 implies a downside risk of about 5.5% from current levels.

See more DLTR analyst ratings

Disclosure