Target Beats Analyst Estimates on EPS
Target (NYS: TGT) reported earnings on Wednesday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Target met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins shrank across the board.
Target booked revenue of $16.87 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $16.81 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $15.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.04. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.02 per share. GAAP EPS of $1.04 for Q1 were 5.1% higher than the prior-year quarter's $0.99 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.9%, 50 basis points worse than the prior-year quarter. Operating margin was 7.6%, 30 basis points worse than the prior-year quarter. Net margin was 4.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.81 billion. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $73.30 billion. The average EPS estimate is $4.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,395 members rating the stock outperform and 234 members rating it underperform. Among 776 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 724 give Target a green thumbs-up, and 52 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Target is outperform, with an average price target of $63.44.
While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is Target the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add Target to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.