Dollar Tree Q2 GAAP EPS In-line, Revenue Misses By $30M

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Dollar Tree Intrinsic Value – Dollar Tree($NASDAQ:DLTR)’s Q2 GAAP EPS was in-line with expectations at $1.60, but revenue missed by $30M, coming in at $6.77B. This miss was largely due to lower than expected sales at Family Dollar stores. It’s not clear yet how this will affect Dollar Tree’s market and earnings in the long term. However, the company did note that Family Dollar’s performance was affected by “unfavorable weather conditions” in the quarter. If this is the case, then it’s possible that the company will see a rebound in the next quarter.

Price History

On Thursday, Dollar Tree stock opened at $149.0 and closed at $149.0. Dollar Tree has been struggling lately, as competition from Amazon and other online retailers has increased. The company is also facing headwinds from tariffs. Despite the challenges, Dollar Tree remains one of the largest discount retailers in the United States.

VI Analysis – Dollar Tree Intrinsic Value

The company’s fundamentals reflect its long term potential, and the fair value of the company’s stock is around $131.6, calculated by the VI Line. However, the stock is currently trading at $149.0, which is a fair price that is overvalued by 13%.

Summary

The news of Dollar Tree’s Q2 results being in-line with expectations but missing on revenue saw the stock price move down the same day. However, investors may still want to consider investing in the company as it is a leading retailer in the discount segment. The company has a strong balance sheet and generates healthy cash flows, which should support future growth.