Target (TGT) Tops Q3 EPS by 6c, Beats on Revenues; Boosts FY17 EPS Guidance Above Consensus

(Updated - November 15, 2017 6:35 AM EST)

Target (NYSE: TGT) reported Q3 EPS of $0.91, $0.06 better than the analyst estimate of $0.85. Revenue for the quarter came in at $16.67 billion versus the consensus estimate of $16.57 billion.

Fourth Quarter and Fiscal 2017 Guidance

Target expects fourth quarter 2017 comparable sales growth of flat to two percent. That performance would translate into full-year 2017 comparable sales growth of flat to one percent.

For fourth quarter 2017, the Company expects GAAP EPS from continuing operations and Adjusted EPS of $1.05 to $1.25. For full-year 2017, the Company now expects GAAP EPS from continuing operations of $4.38 to $4.58 and Adjusted EPS of $4.40 to $4.60, compared with prior guidance of $4.35 to $4.55 for GAAP EPS from continuing operations and $4.34 to $4.54 for Adjusted EPS. The 2 cent difference between expected full-year GAAP EPS from continuing operations and Adjusted EPS is driven by the expected net impact of debt-retirement costs and tax benefits.

Fourth quarter and full-year 2017 GAAP EPS from continuing operations may include the impact of additional discrete items which will be excluded in calculating Adjusted EPS. The Company is not currently aware of any such discrete items.

Highlights

• Third quarter comparable traffic grew 1.4 percent. Comparable sales increased 0.9 percent.
• Third quarter GAAP EPS from continuing operations of $0.87 and Adjusted EPS1 of $0.91 were near the upper-end of the guidance range of $0.75 to $0.95.
• Comparable digital channel sales increased 24 percent, on top of 26 percent growth in third quarter 2016.
• In the third quarter, Target devoted $847 million to capital investment, paid dividends of $339 million, and returned $171 million through share repurchases.

For earnings history and earnings-related data on Target (TGT) click here.

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