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
