Target stock surges in pre-market on upbeat outlook

2:29 PM 1 March 2022

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

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits