Target Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Target (NYSE:TGT) will unveil its latest earnings on Thursday, November 15, 2012. Target operates general-merchandise and food discount stores in the United States.

Target Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 77 cents per share, a decline of 6.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 76 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 77 cents during the last month. For the year, analysts are projecting profit of $4.40 per share, a rise of 1.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of $1.06 per share against a mean estimate of profit of $1.01 per share.

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Stock Price Performance: Between September 14, 2012 and November 9, 2012, the stock price had fallen $2.65 (-4.1%), from $64.67 to $62.02. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 29, 2012, when shares rose for eight straight days, increasing 6.1% (+$3.32) over that span. It saw one of its worst periods between September 21, 2012 and October 2, 2012 when shares fell for eight straight days, dropping 3.8% (-$2.46) over that span.

Wall St. Revenue Expectations: On average, analysts predict $16.93 billion in revenue this quarter, a rise of 3.2% from the year-ago quarter. Analysts are forecasting total revenue of $73.2 billion for the year, a rise of 4.8% from last year’s revenue of $69.86 billion.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.23 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.25 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.1% to $13.33 billion while assets rose 5.3% to $16.41 billion.

A Look Back: In the second quarter, profit remained level at $704 million ($1.06 a share) from the year earlier, beating analyst estimates. Revenue rose 3.3% to $16.78 billion from $16.24 billion.

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

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