Target Corporation Earnings: Another Quarter of Income Growth

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

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Target Earnings Cheat Sheet for the First Quarter

Results: Net income for Target Corporation rose to $689 million (99 cents/share) vs. $671 million (90 cents/share) in the same quarter a year earlier. A rise of 2.7% from the year earlier quarter.

Revenue: Rose 2.2% to $15.94 billion YoY.

Actual vs. Wall St. Expectations: TGT beat the mean analyst estimate of 94 cents/share. Estimates ranged from 91 cents per share to $1.01 per share.

Quoting Management: “Our first quarter financial performance was the result of stronger-than-expected profitability in our Credit Card Segment, which offset the impact of weaker-than-anticipated sales in our Retail Segment,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “Our PFresh remodel program and 5% REDcard Rewards loyalty program continue to deliver incremental traffic and sales in an environment where our guests remain cautious in their spending. Throughout the organization we’re focused on driving sales by providing value, quality and reliability to our guests and delivering on both halves of our Expect More. Pay Less. brand promise.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 10.6% and in the third quarter of the last fiscal year, the figure rose 22.7%.

Revenue has risen the past four quarters. Revenue increased 2.4% to $20.66 billion in fourth quarter of the last fiscal year. The figure rose 2.2% in third quarter of the last fiscal year from the year earlier and climbed 3.1% in second quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Wal-Mart Stores, Inc. (NYSE:WMT), Costco Wholesale Corp. (NASDAQ:COST), Dollar Tree, Inc. (NASDAQ:DLTR), Dollar General Corp. (NYSE:DG), Gordmans Stores, Inc. (NASDAQ:GMAN), Wal-mart de Mexico S A B de C V (WMMVY), Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), Fred’s, Inc. (NASDAQ:FRED), and BJ’s Wholesale Club, Inc. (NYSE:BJ).

Stock Performance: Shares of TGT are up 0.04% from the previous close of $50.78.

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