Discount retailer Dollar Tree is getting a bump after posting stronger than expected earnings and raising its guidance for the next quarter.
The company reported earnings of $0.72 per share, but with a $0.09 per share decrease due to debt refinancing costs.
Operating earnings of $0.81 per share were above the $0.77 per share projected by analysts.
Net sales came in slightly below expectations, however, at $5.00 billion against projections of $5.06 billion.
Guidance for the fourth quarter was raised to $1.24 to $1.33 per share, up from a previous estimate of $1.21 to $1.30 per share and stronger than the estimates $1.30 per share.
“I am proud of our team’s achievements in our third quarter,” said CEO Bob Sasser in a statement. “Our results demonstrated a solid performance in our Dollar Tree segment, continued meaningful progress in our integration of Family Dollar, and our ability to refinance and pre-pay a portion of our outstanding debt in order to reduce future interest costs.”
The firm closed their acquisition of rival Family Dollar in July 2015.
Following the news, Dollar Tree stock was trading higher in pre-market trading by 7.45% as of 7:56 a.m. ET at $88.10, up $6.11 per share from its closing price.
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