Dollar Tree jumps after reporting better-than-expected results

Dollar Tree's DLTR.O shares are up ~9.5% at $96.97 a day after the discount store chain reported better-than-expected quarterly results and with multiple analysts raising their price target on the stock

DLTR is on track for biggest daily pct gain since Mar. 27, and on pace for its highest close since August 2024

DLTR reported on Wed ~40% drop in rev to $4.64 bln and adj EPS of $1.26. Analysts had expected rev of $4.54 bln and adj EPS of $1.20, per LSEG data

DLTR had forecasted that second quarter net sale growth of between 3% and 5% but adj EPS will slump by up to 50% weighed down by the effect of cost pressures particularly from higher tariffs

Multiple analysts, including from Morgan Stanley and Truist Securities, raised their PT on DLTR, while JPMorgan upgraded the stock to "overweight" from "neutral" in addition to raising its PT

Among 27 analysts that cover DLTR, avg rating is "HOLD" and median PT is $95

In March, DLTR agreed to its less-profitable Family Dollar subsidiary for $1 billion to a group of private equity investors

Rival Dollar General DG.N had also reported better-than-expected results on Tuesday, with its shares jumping ~16%. It is currently up 2%

With today's move, DLTR is up 29.2% YTD vs the S&P 500 consumer staples index .SPLRCS, which is up ~6% YTD