CHESAPEAKE, Va. (AP) — Dollar Tree said its profit and revenue rose in its fourth quarter after it bought rival Family Dollar last year.
The Chesapeake, Virginia, company completed its $8.5 billion purchase of Family Dollar in July, making it the largest dollar store chain with nearly 14,000 stores in the U.S. and Canada.
It reported fiscal fourth-quarter net income of $229 million, or 97 cents per share, compared with $206.6 million, or $1 per share, in the same period a year ago.
Earnings, adjusted for non-recurring costs, were $1.01 per share, falling short of Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
Dollar Tree’s revenue more than doubled from the same period the year before to $5.37 billion, with most of that gain coming from the addition of Family Dollar stores. Wall Street expected a bigger revenue increase to $5.42 billion, according to eight analysts surveyed by Zacks.
For the current quarter ending in May, Dollar Tree said it expects to earn 75 cents per share to 83 cents per share. Analysts expected 81 cents per share, according to FactSet. Dollar Tree said it expects revenue in the range of $5.05 billion and $5.12 billion. Analysts surveyed by Zacks had expected revenue of $5.08 billion.
The company expects full-year earnings between $3.35 per share and $3.65 per share, below the $3.78 per share analysts expected, according to FactSet. Dollar Tree expects revenue ranging between $20.76 billion to $21.11 billion. Analysts expected $20.9 billion, according to FactSet.
Shares of Dollar Tree Inc. rose $1.51, or 1.9 percent, to $81.76 in afternoon trading Tuesday after a weak start. Its shares are up 2.7 percent over the past year.