Overview
Target Q3 net sales fell 1.5% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company Q3 net income missed analyst estimates
Outlook
Target expects Q4 sales to decline by low-single digits
Target forecasts full-year GAAP EPS of $7.70 to $8.70
Target projects full-year Adjusted EPS of $7.00 to $8.00
Result Drivers
DIGITAL SALES - Digital comparable sales grew 2.4%, driven by over 35% growth in same-day delivery via Target Circle 360
NON-MERCHANDISE GROWTH - Non-merchandise sales increased nearly 18%, with Roundel, membership, and marketplace revenues growing double digits
DISCRETIONARY SPENDING - Continued softness in discretionary spending impacted overall sales, despite growth in Food & Beverage and Hardlines
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $25.27 bln | $25.32 bln (26 Analysts) |
Q3 Adjusted EPS | Beat | $1.78 | $1.72 (29 Analysts) |
Q3 EPS | $1.51 | ||
Q3 Net Income | Miss | $689 mln | $784.54 mln (27 Analysts) |
Q3 Gross Margin | 28.20% | ||
Q3 Operating Income | Miss | $948 mln | $1.12 bln (28 Analysts) |
Q3 Pretax Profit | Miss | $859 mln | $1.03 bln (25 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 22 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy."
Wall Street's median 12-month price target for Target Corp is $100.00, about 11.5% above its November 18 closing price of $88.53
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nPn2v6kSSa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
