Target Earnings Preview: Get Ahead of the Analysts

Target (NYSE:TGT) will report earnings before markets open on Wednesday, May 22nd. Target Corporation operates general merchandise discount stores in the United States. The Company’s merchandising operations include general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards.

Here is your Cheat Sheet to Target Earnings:

Earnings Expectations: Analysts expect earnings of $0.86 per share on revenues of $16.85 billion. Currently, the company’s P/E ratio stands at 15.57.

Analyst Trends:

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 $1.1 to a profit $1.05. For the current year, the average estimate is a profit of $4.48, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Target has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 64,950 65,360 67,390 69,860 73,300
Diluted EPS ($) 2.86 3.30 4.00 4.28 4.52

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 21,290 16,870 16,780 16,930 22,730
Diluted EPS ($) 1.454 1.04 1.06 0.96 1.465

Past Performance:
Target has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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