Dollar Tree (DLTR) is likely to exceed Q4 earnings expectations when it reports results next Wednesday, Oppenheimer said in a note Thursday.

The consensus for the quarter stands at $2.20 per share, while Oppenheimer is forecasting $2.21.

The firm said it saw the upcoming report as "pivotal" for the company as it expected a potential conclusion of the review for strategic alternatives for the Family Dollar banner and an update on management's efforts to offset recently enacted Chinese tariffs.

The firm said it expected the tariffs to impact 2025 earnings by around $0.40 per share, bringing management's guidance for the year within the bracket of Oppenheimer's $5.50 estimate. The Street consensus is $6.02, the note said.

Oppenheimer said it expects the company to mitigate the potential impacts of tariffs through negotiations and by moving sourcing from China which accounts for more than 40% of its direct imports.

The firm has a perform rating on the stock.

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