WR Hambrecht raised its estimates on Dollar Tree Stores (DLTR ).
Analyst David Yamamoto says the 25 cents second-quarter earnings per share beat his and the consensus estimate of 24 cents. Also, the company upped the fiscal 2004 (Jan.) sales and earnings per share guidance to at least 19% growth, vs. the former 15% guidance. He says the company indicated August sales are trending in-line with plan -- despite a recent blackout; Dollar Tree sees third-quarter sales of $665 million to $680 million, with the mid-point of that range equating to slightly positive comparisions.
Given management's continued optimism, Yamamoto raised his 70 cents fourth-quarter earnings per share estimate to 71 cents. He raised the $1.54 fiscal 2004 estimate to $1.56, and upped the $1.85 estimate to $1.86. Yamamoto maintains his buy rating, saying the stock still has one of lowest valuations among its peers.