Dollar Tree rises on 4th-quarter results, says it hopes to close Family Dollar deal in April



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CHESAPEAKE, Virginia — Shares of Dollar Tree Inc. traded higher Wednesday after the retailer posted solid fourth-quarter results.

Dollar Tree said antitrust regulators have not cleared its pending purchase of competitor Family Dollar, but the company said it still expects to sell off no more than 300 stores. It hopes to complete negotiations with the government in early March and complete the $8.5 billion deal by April 27.

The company's stock rose $2.43, or 3.1 percent, to $79.90 in midday trading. Earlier it set an all-time high of $80.85.

Dollar Tree said its net income totaled $206.6 million, or $1 per share, over the three months that ended Jan. 31. Excluding acquisition costs and other items, the Chesapeake, Virginia-based company said it earned $1.16 per share. It said revenue rose to $2.48 billion.

Analysts expected Dollar Tree to report net income of $1.15 per share and $2.47 billion in revenue, according to Zacks Investment Research.

The retailer said sales at stores open at least a year rose 5.6 percent. That measurement is considered a key indicator of retailer health because it excludes results at locations that opened or closed in the last year, focusing on stores that have remained in operation.

Dollar Tree said it expects net income of 69 cents to 74 cents per share excluding acquisition-related costs in the fiscal first quarter on $2.15 billion to $2.2 billion in revenue. For the full year it forecast a profit of $3.30 to $3.50 per share on revenue of $9.21 billion to $9.45 billion.

Dollar Tree shares have risen 10 percent since the beginning of the year, with the Standard & Poor's 500 index up nearly 3 percent over the same period. The stock has climbed 49 percent in the last 12 months.

Dollar Tree agreed to buy Family Dollar in July, and regulators have taken a long look at the deal. The companies run more than 13,000 stores combined and say their annual revenue will be more than $18 billion. Dollar Tree prices all items at $1 or less while Family Dollar's items generally cost between $1 and $10.

Family Dollar shareholders approved the deal in January.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DLTR at http://www.zacks.com/ap/DLTR

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Keywords: Dollar Tree, Earnings Report

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