Why did Dollar Tree stock drop on Tuesday? An insufficient EPS guide
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A profit guide short of analyst expectations prompted a slide for Dollar Tree (NASDAQ:DLTR) stock on Tuesday.

While the discount retailer drove past expectations for both EPS and revenue in the third quarter and even raised its full-year sales outlook based upon the better than expected Q3 sales figures. However, EPS guidance toward the lower end of a $7.10 to $7.40 range suggests disappointment against the analyst consensus of $7.29, which had itself been reined in significantly as analysts tempered expectations ahead of earnings.

Wells Fargo analyst Edward Kelly warned that the guide suggests below consensus Q4 profits, indicating elevated inflationary impacts that still hang over the retailer.

âWe continue to believe there is risk to the 2023 outlook as management positions the company to capture the multi-year opportunity ahead,â he told clients on Tuesday. âRising macro pressure only adds another headwind to navigate.â

Shares of Dollar Tree (DLTR) fell 7.79% on Tuesday.
Dig into the earnings presentation for the quarter.