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Target Stock Down On Q4 Sales Miss; Kohl's Shares Surge As Profit Tops Estimates

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Target Corp. (TGT) reported a 10.6 percent rise in fourth-quarter adjusted earnings per share, year-on-year. Operating income increased 7.3 percent from prior year. Comparable sales were up 1.5 percent, reflecting comparable digital sales growth of 20 percent. Shares of Target Corp. were down modestly in pre-market trade on Tuesday as sales came in below analysts' projection.

Fourth quarter adjusted earnings per share was $1.69 compared to $1.53, last year. On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $1.65, for the quarter. Analysts' estimates typically exclude special items. Operating income was $1.20 billion, compared to $1.12 billion.

Fourth-quarter sales were $23.13 billion compared to $22.73 billion, previous year. Total revenue increased to $23.40 billion from $22.98 billion. Analysts expected revenue of $23.49 billion for the quarter.

Full-year 2019 adjusted earnings per share recorded new all-time highs with a growth of 18.4 percent to $6.39. Full year 2019 sales increased 3.6 percent to $77.1 billion from $74.4 billion last year, reflecting a 3.4 percent increase in comparable sales combined with sales from non-mature stores. Revenue was $78.1 billion, up 3.7 percent, reflecting sales growth of 3.6 percent and a 6.3 percent increase in other revenue.

For the first quarter, Target expects a low-single digit increase in comparable sales and a mid-single digit increase in operating income. Both GAAP EPS from continuing operations and adjusted EPS are projected in a range of $1.55 to $1.75. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.66.

For full-year 2020, Target expects a low-single digit increase in comparable sales and a mid-single digit increase in operating income. Both GAAP EPS from continuing operations and adjusted EPS are anticipated in a range of $6.70 to $7.00. Analysts polled by Thomson Reuters expect the company to report profit per share of $6.88.

Separately, Kohl's Corp. (KSS) reported fourth-quarter non-GAAP earnings per share of $1.99, a decline of 11 percent from a year ago. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.88, for the quarter.

Kohl's Corp. reported fourth-quarter total revenue was $6.83 billion, up 0.1% from previous year. Net sales were $6.537 billion compared to $6.535 billion. Analysts expected revenue of $6.52 billion for the quarter. Comparable sales were flat for the quarter. Shares of Kohl's Corp. were up nearly 8% in pre-market trade on Tuesday.

Kohl's Corp. reported full year 2019 non-GAAP earnings per share of $4.86, down 13 percent from previous year. Comparable sales were down 1.3 percent, for the fiscal year period.

For fiscal 2020, Kohl's Corp. anticipates earnings per share of $4.20 to $4.60. Comparable sales are expected to change between a range of decline of 1% to an increase of 1%. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.59.

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