03:22 PM EDT, 08/28/2024 (MT Newswires) -- Dollar Tree's ( DLTR ) Q2 earnings are expected to be at the low end of guidance amid headwinds in the discretionary segment "and lingering challenges for the lower income consumer," Oppenheimer said Wednesday in a report.

The discount store chain is expected to report a Q2 profit of $1.02 a share compared with guidance of $1 to $1.10, Oppenheimer said. Management might narrow full-year guidance to the lower end of the range, while current analyst estimates look "aggressive" and may reset in coming quarters, the report said.

Dollar Tree's ( DLTR ) shares have likely bottomed at current levels and "remain on our radar given the defensive attributes of the model and upside potential from management initiatives if successful," Oppenheimer said.

With a successful sale or spinoff of the Family Dollar business, "we believe the company would be much better positioned for share gains and a more consistent financial delivery over time," the report said.

Oppenheimer has a perform rating on the stock. Quarterly results are set for Sept. 4.

Dollar Tree ( DLTR ) shares fell 1.1% in recent trading Wednesday.

Price: 94.39, Change: -1.01, Percent Change: -1.06