Target soars 12% after crushing earnings and raising its full-year profit outlook

Associated Press

In this Monday, Nov. 4, 2019 photo, a "we're hiring," sign hangs on the side of a Target store in North Miami Beach, Fla. On Tuesday, Nov. 5, the Labor Department reports on job openings and labor turnover for September. (AP Photo/Wilfredo Lee)

• Target reported third-quarter earnings Wednesday that beat Wall Street expectations. The retailer also raised its full-year profit outlook.
• Shares soared as much as 12% in early trading on the news.
• "Our third quarter results are further proof of the durability of our strategy," Target CEO Brian Cornell said in a release.
• Watch Target trade live on Markets Insider.

Shares of Target surged as much as 12% in early trading Wednesday after the company reported earnings that exceeded Wall Street's expectations.

Here's what the company reported versus what analysts surveyed by Bloomberg expected:

• Adjusted earnings per share: $1.36 reported, versus $1.19 (expected)
• Revenue: $18.67 billion reported, versus $18.22 billion (expected)
• Comparable sales: +4.5% reported, versus +3.5% (expected)

The company also raised its full-year profit guidance. Target now expects full-year adjusted earnings per share to fall between $6.25 and $6.45 per share, up from its previous guidance of $5.90 to $6.20 per share. Analysts had expected earnings between $6.05 and $6.40 per share.

"Our third quarter results are further proof of the durability of our strategy, as we're seeing industry-leading strength across multiple metrics, from the top line to the bottom line," Target CEO Brian Cornell said in a press release.

It's also evidence that investments Target has made in updating stores, including opening 25 mini-stores with Disney in October, have paid off. The company also expanded its grocery options this year with the launch of its brand, Good & Gather. And, Target made improvements to its online experience and added same-day shipping through its website.

The earnings beat comes amid disappointing reports from department stores such as Kohl's and JCPenney, which disclosed earnings earlier this week. Target's big-box rival, Walmart, also reported an earnings beat last week, sending shares to a 52-week high.

Target is up 82% year to date.

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