Target climbs as jump in digital sales drives first-quarter earnings beat

• Target shares rose as much as 3% on Wednesday after the company's first-quarter results jumped past Wall Street's estimates.
• Adjusted earnings of $3.69 a share blew past the $2.25 a share estimate from Refinitiv.
• Digital same-store sales grew by 50% during the three-month period.

Target shares climbed as much as 3% on Wednesday following first-quarter results that showed earnings surged as shoppers took advantage of the company's same-day services.

The retailer said its adjusted earnings were $3.69 a share, well beyond the $2.25 a share forecast generated from a Refinitiv poll of analysts. Adjusted earnings soared from $0.59 a share a year ago.

Total revenue increased by 23% to $24.2 billion in the three months ended May 1 from $19.62 billion a year ago, outpacing the $21.81 billion consensus estimate.

The stock has gained more than 70% over the past year as the retailer, like others, has dealt with challenges brought on by the COVID-19 pandemic.

Target said growth in the most recent period stemmed in part from a 50% climb in same-store digital sales, including more than 90% rise in same-day services such as drive-up and in-store order pickup and Shipt grocery deliveries.

Shoppers purchased more apparel and home goods items, which helped the company gain more than $1 billion in market share during the quarter.

"[We're] confident in continued comp growth in the second quarter and through the remainder of the year, as well as a healthy full-year operating margin rate," Target said in its earnings report.