Target shares gain more than 8% after earnings release

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