Target spikes as earnings, guidance top expectations

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Target spikes as earnings, guidance top expectations

Target

Associated Press

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  • Target reported first-quarter results that topped Wall Street estimates.
  • The company's guidance also beat expectations.
  • Shares gained 7% early Wednesday
  • Watch Target trade live.

Target on Wednesday reported first-quarter results that broadly beat Wall Street estimates, sending shares up 7% ahead of the opening bell.

The retailer earned $1.53 a share on revenue of $17.6 billion, easily beating the $1.44 and $17.4 billion that analysts surveyed by Bloomberg were expecting.

Same-store sales also topped expectations, coming in at up 4.8% while analysts were anticipating a 4.3% gain. The retailer said comparable digital sales surged 42% versus a year ago, and contributed 2.1 percentage points to the overall growth.

"Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share," Chairman and CEO Brian Cornell said in the earnings release.

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"Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth. Target's first quarter performance and market-share gains demonstrate that the model is working."

Looking ahead, Target sees second-quarter adjusted earnings per share of $1.52 to $1.72, ahead of the $1.60 that analysts were hoping for. Its full year EPS forecast of $5.75 to $6.05 also outpaced expectations.

Target was up 8.8% this year through Tuesday.

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