Target shares surge after company crushes earnings and raises forecast

Earnings

Customers shop at a Target store in Chicago.

Scott Olson | Getty Images

Target is set to report quarterly earnings before the bell on Wednesday.

Here’s what analysts are expecting, based on Refinitiv data:

  • Earnings per share: $1.19
  • Revenue: $18.49 billion
  • Same-store sales: up 3.6%

Many analysts expect Target to head into the holiday season with the wind at its back. The company has made investments to refresh its stores, open small-format locations in urban markets like New York and around college campuses, launch in-house brands — including a new grocery line — and add faster delivery options thanks to its Shipt platform for same-day shipments.

It has a partnership with Disney to open mini Disney shops in some Target stores. It also has teamed up with the parent company of the Toys R Us brand, TRU Kids, to help relaunch and now run ToysRUs.com.

Target said in October that it expects to spend $50 million more on payroll during the fourth quarter than it did a year ago, in order to offer more overtime and increase the number of workers in stores at the busiest hours this holiday season. 2018 was Target’s “most successful holiday in more than a decade,” according to CEO Brian Cornell.

Big-box rival Walmart last week reported better-than-expected earnings and raised its profit outlook for the full year, building on the strength of its grocery business.

Target has been calling for adjusted earnings per share to fall within a range of $5.90 to $6.20. Analysts have been calling for $6.17.

Target’s stock has rallied more than 67% since the start of January. The company has a market cap of $56.5 billion, compared with Walmart‘s $341 billion.

This is a developing story. Please check back for updates.

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