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Target jumps 3% in pre-market after Q3 earnings beat

Published 11/18/2015, 08:09 AM
© Reuters.  Target beats sales expectations, lifts profit view
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Investing.com - U.S. retail giant Target Corporation (N:TGT) reported better-than-expected third quarter earnings and revenue figures early on Wednesday, sending its shares higher in pre-market trade.

Target said adjusted earnings per share came in at 86 cents, beating expectations for adjusted earnings of 85 cents per share and up 8.6% from adjusted earnings of 79 cents in the same period a year earlier.

Third Quarter GAAP earnings was 87 cents, compared with 55 cents last year, as this year's results reflect 11 cents of tax benefits related to investment losses in Canada.

Third quarter revenue totaled $17.61 billion, above forecasts for revenue of $17.21 billion and compared to sales of $16.96 billion in the year-ago period.

Third quarter comparable sales growth of 1.9% was near the high-end of the company's expectations, driven by traffic growth of 1.4%.

"We're pleased with our third quarter financial results, as both sales and adjusted earnings per share were near the upper end of our expectations," said Brian Cornell, chairman and CEO of Target.

In fourth quarter 2015, Target expects adjusted earnings per shares of $1.48 to $1.58, compared with $1.49 in fourth quarter 2014.

The company now expects full-year 2015 adjusted earnings per shares of $4.65 to $4.75, compared with prior guidance of $4.60 to $4.75.

Following the release of the report, Target shares rallied 2.62% in pre-market trade to $74.85 from a closing price of $72.94 on Tuesday.

Meanwhile, the outlook for U.S. equity markets was modestly upbeat. The Dow futures pointed to a gain of 28 points, or 0.15%, at the open, the S&P 500 futures indicated a rise 4 points, or 0.16%, while the Nasdaq 100 futures increased 10 points, or 0.21%.

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