Target Earnings: Here’s Why Investors are Selling Shares Now

Target Corp. (NYSE:TGT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.26%.

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Target Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25.96% to $0.77 in the quarter versus EPS of $1.04 in the year-earlier quarter.

Revenue: Decreased 0.95% to $16.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Target Corp. reported adjusted EPS income of $0.77 per share. By that measure, the company missed the mean analyst estimate of $0.87. It missed the average revenue estimate of $16.82 billion.

Quoting Management: “Target’s first quarter earnings were below expectations as a result of softer-than-expected sales, particularly in apparel and other seasonal and weather-sensitive categories,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “While we are disappointed in our first quarter performance, we remain confident in our strategy, and we continue to invest in initiatives, including Canada, our digital channels and CityTarget, that will drive Target’s long-term growth.”

Key Stats (on next page)…

Revenue decreased 26.49% from $22.73 billion in the previous quarter. EPS decreased 47.62% from $1.47 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.09 to a profit $1.06. For the current year, the average estimate has moved down from a profit of $4.82 to a profit of $4.50 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)