Target Raises Earnings Guidance as 2Q Profit Tops Street Views

By Colin Kellaher

Target posted a fiscal second-quarter profit that blew past Wall Street's expectations and raised its full-year earnings guidance.

The Minneapolis retailer on Wednesday reported earnings of $1.19 billion, or $2.57 a share, for the quarter ended Aug. 3, up from $835 million, or $1.80 a share, a year earlier, and ahead of the $2.18 a share that analysts polled by FactSet, on average, were expecting.

Revenue rose 2.7% to $25.45 billion, ahead of the $25.19 billion Wall Street was looking for, while comparable sales rose 2%, topping the 1.1% rise analysts had penciled in.

Target lifted its full fiscal-year earnings guidance to $9.00 to $9.70 from a prior forecast of $8.60 to $9.60 a share and backed its comparable-sales guidance of flat to up 2%, although the retailer said growth will more likely be in the lower half of that range. Wall Street is expecting a full-year profit of $9.23 a share and a 0.1% rise in comparable sales, according to FactSet.

Target said it expects third-quarter earnings of $2.10 to $2.40 a share, with comparable sales flat to up 2%. Analysts are expecting a profit of $2.22 a share amid a 1.5% rise in comparable sales, according to FactSet.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 21, 2024 06:45 ET (10:45 GMT)

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