DLTR
Shares of the stock dropped hard on Tuesday after company noted cost pressures driven by Chinese tariffs. Stock is testing band of support that has defined the DLTR chart going back 14 months.
Dollar Tree, Inc. (NASDAQ:DLTR) just reported Q3 EPS of $1.08 vs. the $1.13 consensus and revenue of $5.75 bln compared to the $5.74 bln estimate. The company has now missed analysts' EPS expectations in back-to-back quarters. A big driver for this underperformance is tariffs on Chinese imports, which impact about 40% of the company’s product margins.
For Q4, the company guided for EPS of $1.70-1.80 vs. the $2.03 consensus. This Q3 miss and weak guidance caused DLTR to cut its FY20 EPS guidance to $4.66-4.76 from $4.90-5.11, below the $5.11 consensus.
The company anticipates that tariffs will increase cost of goods by $19 mln in Q4, with most of the impact resulting from upcoming List 4 tariffs.
The stock was pounded in Tuesday’s action as a result.
Dollar Tree, Inc. (NASDAQ:DLTR) frames itself as a company that operates discount variety retail stores. It operates through two segments, Dollar Tree and Family Dollar.
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