logo
Plus   Neg
Share
Email

Target Q4 Profit Rises, Sees Q1, FY18 Profit In Line With View; Stock Down

TargetCorporation-030618-lt.jpg

Target Corp. (TGT) on Tuesday reported a 35 percent increase in profit for the fourth quarter of 2017 from last year. The fourth quarter comparable sales increased 3.6 percent, while quarterly sales grew 10.0 percent, reflecting the impact of an additional week in the latest-quarter. The company reaffirmed outlook for fiscal year 2018.

Adjusted earnings per share missed analysts' expectations, while quarterly sales topped their estimates.

In the pre-market trade, TGT is trading at $72.50 down $2.65 or 3.53 percent.

"At our Financial Community Meeting later this morning, we will outline our plans to continue investing in our team and make 2018 a year of acceleration in the areas that set Target apart- our stores, exclusive brands, and rapidly-growing suite of fulfillment options. While we have a lot left to accomplish, our progress in 2017 gives us confidence that we are making the right long-term investments to best position Target for profitable growth in a rapidly changing consumer and retail environment," said Brian Cornell, chairman and chief executive officer of Target Corporation.

For the first quarter 2018, Target expects a low-single digit increase in comparable sales, and both GAAP earnings per share from continuing operations and adjusted earnings per share of $1.25 to $1.45. Analysts project first-quarter earnings of $1.40 per share.

Looking ahead for full-year 2018, Target still expects a low-single digit increase in comparable sales, and both GAAP earnings per share from continuing operations and adjusted earnings per share of $5.15 to $5.45. Analysts expect annual earnings of $5.27 per share.

The company reported that its net earnings for the fourth-quarter of 2017 rose 34.7 percent to $1.10 billion from last year's $817 million, with earnings per share improving to $2.02 from $1.45 in the prior year.

Adjusted earnings per share from continuing operations for the fourth-quarter of 2017 were $1.37 compared to $1.45 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.38 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter 2017 increased 10.0 percent to $22.77 billion from $20.69 billion last year, reflecting the impact of an additional week in this year's fourth quarter, a 3.6 percent increase in comparable sales, and sales in non-mature stores. Wall Street expected revenues of $22.53 billion for the quarter. Comparable digital channel sales grew 29 percent and contributed 1.8 percentage points of comparable sales growth.

The company noted that the strong traffic growth in both stores and digital drives fourth quarter comparable sales increase of 3.6 percent. Comparable sales grew more than 4 percent in January, leading to comparable sales growth of 3.6 percent for the fourth quarter. Traffic grew 3.2 percent in the fourth quarter, reflecting healthy increases in both stores and digital channels.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT