Target Earnings: Profitability Streak Remains Alive

S&P 500 (NYSE:SPY) component Target Corporation (NYSE:TGT) reported net income above Wall Street’s expectations for the third quarter. Target operates general-merchandise and food discount stores in the United States.

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Target Corporation Earnings Cheat Sheet

Results: Net income for the retail-discount rose to $637 million (96 cents per share) vs. $555 million (82 cents per share) in the same quarter a year earlier. This marks a rise of 14.8% from the year-earlier quarter.

Revenue: Rose 3.2% to $16.93 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Target Corporation reported adjusted net income of 90 cents per share. By that measure, the company beat the mean estimate of 79 cents per share. Analysts were expecting revenue of $16.84 billion.

Quoting Management: “We’re pleased with Target’s third quarter financial performance, which reflects superb execution across each of our business segments,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “We are well-positioned to deliver strong fourth quarter performance by offering compelling merchandise and unbeatable value through initiatives like the Target/Neiman Marcus Holiday Collection, 5% REDcard Rewards and our new Holiday Price Match which allow our guests to shop at Target with confidence throughout the holiday season.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the second quarter, by 3 cents in the first quarter, and by 10 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 3.3% to $16.78 billion in the second quarter. The figure rose 5.8% in the first quarter from the year earlier and climbed 3% in the fourth quarter of the last fiscal year from the year-ago quarter.

Net income has increased 2.9% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 14.8% from the year-earlier quarter.

Looking Forward: The average estimate for the fourth quarter is steady at $1.50 a share. At $4.41 per share, the average estimate for the fiscal year has risen from $4.36 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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