Sumary of Does Target Stock Have More Room To Run?:
- [+] Greim/LightRocket via Getty Images) © 2013 John Greim [Updated: 09/15/21] Target Stock Update Target (NYSE: TGT) recently released its Q2 report, wherein revenues came in flat and adjusted earnings per share were 5% above our estimates.
- The company’s revenues grew a strong 9.5% year-over-year (y-o-y) to $25.2 billion, on the back of U.S. comparable sales rising 8.9% during the second quarter (which also was ahead of the comps consensus estimate of 8.2%).
- While digital sales contributed to these gains, rising customer traffic was the biggest factor as it handled 13% more transactions in this quarter than it did a year ago.
- In addition, the discount retailer’s operating margin held steady at 10% of sales in Q2, almost double Walmart’s (NYSE: WMT) rate – largely due to higher prices and a shift in demand toward premium products.
- For full-year 2021, Target is expecting high single-digit growth in comparable sales, near the high end of the previous guidance range of positive single-digit comparable sales growth.
- It is also expecting an operating income margin rate of 8% or higher.
- We now forecast sales to be $102 billion for fiscal 2021, up 9% y-o-y, and adjusted EPS to come in at $12.42, up 32% y-o-y.
- [Updated: 08/17/21] Target Q2 Pre-Earnings Target (NYSE: TGT), the second-largest discount chain in the U.S., is scheduled to report its fiscal second-quarter results on Wednesday, August 18. We expect Target’s stock to likely see little movement due to revenue and earnings coming in line with the market expectations.