Categories Earnings, Retail

Target (NYSE: TGT) Q3 profit beats estimates, raises FY19 forecast

Target Corporation (NYSE: TGT) reported a 15% jump in earnings for the third quarter of 2019 helped by strong traffic and comparable sales growth. The results exceeded analysts’ expectations. Further, the company raised its earnings guidance for the full year 2019.

Net income from continuing operations climbed 15% to $706 million or $1.37 per share. Adjusted earnings advanced 25% to $1.36 per share. Total revenues increased 5% to $18.7 billion, reflecting sales growth of 4.7% combined with an 8.8% rise in other revenue. Comparable sales grew by 4.5% on traffic growth of 3.1%.

Target (TGT) Q3 2019 Earnings Review

Comparable digital channel sales soared 31%, contributing 1.7 percentage points to Target’s overall comparable sales growth. Same-day fulfillment services accounted for 80% of the company’s digital comps growth.

Looking ahead into the fourth quarter of 2019, the company expects comparable sales growth of 3% to 4%. Target predicts GAAP EPS from continuing operations of $1.55 to $1.75 and adjusted EPS of $1.54 to $1.74 for the fourth quarter. For fiscal 2019, the company now expects GAAP EPS from continuing operations of $6.27 to $6.47 and adjusted EPS of $6.25 to $6.45. This is compared to the previous estimate of $5.90 to $6.20.

Read: Urban Outfitters Q3 earnings review

For the third quarter, the gross margin rate rose to 29.8% from 28.7% a year ago, reflecting the benefit of merchandising efforts to optimize costs, pricing, promotions, and assortment, combined with the favorable category sales mix.

For the third quarter, the guests are increasingly selecting the convenience of its same-day services outpacing Q2 adoption. The company continued refining the store operating model it rolled out to all stores this summer to ensure its teams are ready to offer an unrivaled shopping experience during the peak season. Target opened 9 stores in the third quarter.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top