logo-loader
viewTarget Corporation

Target shares surge as 3Q numbers fly past estimates

The company also hiked its full-year profit forecast on the back of strong sales and profitability

Target Corporation -
Not including one-time items, Target earned US$1.36 per share, which smashed analysts' expectations of US$1.19 a share

Target Corp (NYSE:TGT) shares rocketed before the bell in New York as the US discount retail giant cruised past analysts' estimates with its third-quarter numbers ahead of the key holiday shopping season. 

The company also hiked its full-year profit forecast on the back of strong sales and profitability. 

Unlike others in the sector who are flagging, Target is putting its best foot forward,  refreshing stores, launching small-format locations in markets like New York and around college campuses. It has also added faster delivery options.

Invests in e-commerce

In the three months to November 2, the firm posted net income of US$714 million, or US$1.39 per share, compared with US$622 million, or US$1.17 per share,  in the same period a year ago.

Not including one-time items, Target earned US$1.36 per share, which smashed analysts' expectations of US$1.19 a share.

Revenue for the quarter was US$18.67 billion, compared to the US$18.49 billion, which had been expected.

Same-store sales growth in the period was up 4.5% compared to the 3.6% Wall Street scribes had expected.

Target now expects full-year adjusted earnings to lie between US$6.25 and US$6.45 a share, compared with estimates of US$5.90 and US$6.20 previously. Analysts had expected earnings of US$6.18 per share.

Target has also invested in e-commerce, with the rollout of curbside pickup and same-day deliveries, which has boosted sales and kept the likes of Amazon (NASDAQ:AMZN) at bay.

Online sales rose 31% in the quarter, on top of a 49% rise last year, while same-day fulfillment services, such as order pick up, Drive up and Shipt, accounted for 80% of the group’s digital comparable sales growth.

"Our third quarter results are further proof of the durability of our strategy, as we're seeing industry-leading strength across multiple metrics, from the top line to the bottom line," said Brian Cornell, Target's chairman and CEO.

Target’s stock has rallied more than 67% this year.

Shares gained 9.20% in pre-market deals to stand at US$121.04 in New York.

Contact the author at [email protected]

Quick facts: Target Corporation

Price: 121.9 USD

NYSE:TGT
Market: NYSE
Market Cap: $60.96 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Humanigen announces 71.8 million dollars in financing

Humanigen (OTCQB: HGEN) Chairman and CEO Cameron Durant joined Steve Darling from Proactive Vancouver with news the company has secured almost 72 million dollars in financing. Durant discusses those making up that financing which is a big part of the story..

58 minutes ago

2 min read