Target Q2 Earnings Beat Market; Issues Q3 View, Cuts FY23 Forecast; Stock Climbs In Premarket

While reporting higher earnings above market despite weak revenues in its second quarter, discount retailer Target Corp. (TGT) on Wednesday issued third-quarter earnings view and lowered forecast for fiscal 2023 earnings.

In pre-market activity on the NYSE, Target shares were gaining around 9.4 percent to trade at $136.78.

For the third quarter, the company projects earnings, on a reported and adjusted basis, in the range of $1.20 to $1.60 per share with comparable sales in a wide range around a mid-single digit decline.

On average, 28 analysts polled by Thomson Reuters expect the company to report earnings of $1.84 per share for the quarter. Analysts’ estimates typically exclude special items.

For fiscal 2023, the company now projects earnings, on a reported and adjusted basis, in the range of $7.00 to $8.00, lower than previous estimate of $7.75 to $8.75 per share. The Street is looking for earnings of $7.81 per share for the year.

The Company now expects comparable sales in a wide range around a mid-single digit decline for the remainder of the year. Target previously expected comparable sales in a wide range from a low-single digit decline to a low-single digit increase.

In the second quarter, Target’s profit increased from the same period last year and beat the Street estimates.

The company’s earnings came in at $835 million, or $1.80 per share, compared to $183 million or $0.39 per share last year.

Analysts had expected the company to earn $1.39 per share.

The company’s revenue for the quarter fell 4.9 percent to $24.77 billion from $26.04 billion last year. The Street was looking for revenues of $25.18 billion for the quarter.

Comparable sales declined 5.4 percent in the second quarter, reflecting comparable store sales declines of 4.3 percent and comparable digital sales declines of 10.5 percent.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.

Source: Read Full Article