Target (TGT) Shares Move Lower Despite Better-Than-Expected Q4, Strong Outlook
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Price: $165.34 -0.7%
Revenue Growth %: -3.2%
Financial Fact:
Basic earnings per share (in dollars per share): 1.07
Today's EPS Names:
NLY, CP, RUSHA, More
Revenue Growth %: -3.2%
Financial Fact:
Basic earnings per share (in dollars per share): 1.07
Today's EPS Names:
NLY, CP, RUSHA, More
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Target Corporation (NYSE: TGT) Thursday reported its fourth quarter 2011 results. Shares of Target are trading down roughly 1 percent n the pre-market hours following the report.
Target’s quarterly sales increased 3.3 percent from $20.66 billion a year ago to $21.29 billion while comparable-store sales rose 2.2 percent. The result was slightly above the Street’s consensus of $21.21 billion.
The cost of sales rose 3 percent year over year to $14.99 billion.
Gross margin declined from 28.7 percent in the same quarter of 2010 to 28.4 percent.
Net earnings totaled $981 million, or $1.45 per share, while adjusted earnings per share were $1.49 in the fourth quarter. The Street’s consensus was calling for earnings of $1.40 per share.
Within the Credit Card segment, average receivables fell 7.6 percent to $6.4 billion in the quarter.
Cash and cash equivalents totaled $600 million at the end of the quarter, up from the $583 million it had at the end of fiscal 2010.
Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation, commented, “As we look ahead to 2012, we’ll continue to focus on bringing our “Expect More. Pay Less.” brand promise to life for our guests, providing unique, well-designed merchandise while driving value and loyalty with initiatives like 5% Rewards and REDcard Free Shipping. In addition, we’ll continue to invest in our store, online and mobile channels, open our first CityTarget locations in July and prepare for the opening of our first Canadian Target stores in early 2013.”
For the first quarter of 2012, the company expects adjusted EPS of $0.97 to $1.07 and GAAP EPS of $0.88 to $0.98. For fiscal 2012, the company expects adjusted EPS of $4.55 to $4.75 and GAAP EPS of $4.05 to $4.25. The Street is forecasting earnings will be $0.96 per share for the first quarter and $4.27 for the fiscal year.
Target’s quarterly sales increased 3.3 percent from $20.66 billion a year ago to $21.29 billion while comparable-store sales rose 2.2 percent. The result was slightly above the Street’s consensus of $21.21 billion.
The cost of sales rose 3 percent year over year to $14.99 billion.
Gross margin declined from 28.7 percent in the same quarter of 2010 to 28.4 percent.
Net earnings totaled $981 million, or $1.45 per share, while adjusted earnings per share were $1.49 in the fourth quarter. The Street’s consensus was calling for earnings of $1.40 per share.
Within the Credit Card segment, average receivables fell 7.6 percent to $6.4 billion in the quarter.
Cash and cash equivalents totaled $600 million at the end of the quarter, up from the $583 million it had at the end of fiscal 2010.
Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation, commented, “As we look ahead to 2012, we’ll continue to focus on bringing our “Expect More. Pay Less.” brand promise to life for our guests, providing unique, well-designed merchandise while driving value and loyalty with initiatives like 5% Rewards and REDcard Free Shipping. In addition, we’ll continue to invest in our store, online and mobile channels, open our first CityTarget locations in July and prepare for the opening of our first Canadian Target stores in early 2013.”
For the first quarter of 2012, the company expects adjusted EPS of $0.97 to $1.07 and GAAP EPS of $0.88 to $0.98. For fiscal 2012, the company expects adjusted EPS of $4.55 to $4.75 and GAAP EPS of $4.05 to $4.25. The Street is forecasting earnings will be $0.96 per share for the first quarter and $4.27 for the fiscal year.
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