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.

Also Read:  Key highlights from AutoZone (AZO) Q4 2020 earnings results

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

Most Popular

Highlights of Aurora Cannabis (ACB) Q4 2020 earnings report

Aurora Cannabis, Inc. (NYSE: ACB) reported a wider loss for the fourth quarter of 2020, hurt by a 5% decrease in revenues. The company’s stock fell sharply during Tuesday’s after-hours

Infographic: Stitch Fix Q4 2020 earnings

Stitch Fix (NASDAQ: SFIX) reported fourth-quarter 2020 financial results after the closing bell on Tuesday. The company reported an 11% increase in Q4 revenues to $443.4 million, beating Wall Street

Nike Inc. (NKE) stock spikes after beating Q1 2021 estimates

Nike Inc.'s (NYSE: NKE) profit and revenue in the first quarter of fiscal 2021 surpassed the market's estimates and sent the NKE stock up by about 7% in the extended

2 thoughts on “Target (NYSE: TGT) Q3 profit beats estimates, raises FY19 forecast

Comments are closed.

Top