Target (TGT.US) stock jumped over 11.0% in premarket after a major US retailer posted better than expected earnings and optimistic outlook expects growth to continue even after its pandemic-era gains.
- Target posted adjusted fourth-quarter earnings of $3.19 per share on revenue of $31 billion. Analysts surveyed by Refinitiv expected a profit of $2.86 per share on revenue of $31.39 billion.
- Company predicts that growth will continue to rise even after the pandemic turbocharged its sales and helped the retailer win new customers.
- Comparable sales, important metric that tracks sales online and at stores open at least a year, rose 8.9% in Q4, well below the 10.5% increase expected by StreetAccount.
- The company has worked toward a higher minimum wage. From July, hourly workers began to make at least $15 an hour. Target will spend $300 million more in the year ahead on wages and health care benefits.
- Target expects high-single digit growth in adjusted earnings per share on low- to mid-single digit revenue growth for the fiscal 2022. Analysts predict earnings of $13.30 per share on revenue growth of 2.2% to $108.74 billion for the year.
Target (TGT.US) stock rose over 11.0% in premarket and is currently testing a major resistance zone around $222.00 which is marked with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Should a break higher occur, an upward move may accelerate towards next resistance at $238.00 which is marked with the upper limit of the 1:1 structure and 200 SMA (red line). Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.