Shares of Target (TGT.US) are gaining nearly 8.5% ahead of the opening of today's trading session on Wall Street following the release of better-than-expected Q4 results. The company reported higher earnings in the holiday quarter on the back of a smaller-than-expected sales decline and announced that annual comparable sales would be largely above Wall Street analysts' expectations.
Q4 results
- Adjusted EPS $2.98 vs. $1.89 y/y, estimate $2.40
- Comparable sales -4.4% vs. +0.7% y/y, estimate -4.56%
- Comparable digital sales -0.7% vs. -3.6% y/y, estimate -5.2%
- Sales $31.47bn, +1.6% y/y, estimate $31.35bn
- Gross margin 25.6% vs. 22.7% y/y, estimate 25%
- Ebit $1.89bn, +62% y/y, Ebitda $2.62bn, estimate $2.23bn
- Customer transactions -1.7% vs. +0.7% y/y
- Average transaction amount -2.8% vs. 0% y/y, estimate -0.95%
- Digital sales share of total sales 21.3% vs. 20.8% y/y
- Total shops 1,956, +0.4% y/y, estimate 1,966
- SG&A costs $6.03bn, +6.2% y/y, estimate $6.07bn
- Comparable shop sales -5.4% vs. +1.9% y/y, estimate -4.93%
- Comparable shop sales 78.7% vs. 79.2% y/y, estimate 78.7%
- Operating income $1.87bn, +61% y/y, estimate $1.53bn
OUTLOOK: Q1
- Adjusted EPS US$1.70 to US$2.10, estimate US$2.07
- Comparable sales forecast -3% to -5%, estimate -3.36%
2024 FORECAST
- Adjusted EPS $8.60 to $9.60, estimate $9.12
- Comparable sales 0% to +2%, estimate +0.98%
The company's shares are gaining close to 8.6% before the open of the session. Source: xStation
