Target Corp. (TGT - Analyst Report), department store retailer, came out with second-quarter fiscal 2015 results, wherein adjusted earnings of $1.22 per share cruised way ahead of the Zacks Consensus Estimate of $1.11 and jumped 20.6% year over year.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 has been unchanged in the last 30 days. In the trailing four quarters, including quarter under review, the company outperformed the Zacks Consensus Estimate by an average of 8.6%.
Revenues: Target generated net sales of $17,427 million that increased 2.8% year over year and surpassed the Zacks Consensus Estimate of $17,382 million. Comparable store sales climbed 2.4% during the quarter.
Key Events: Target returned about $1,006 million to its shareholders in the form of share repurchases and dividend payments. The company bought back shares worth $675 million and paid dividends of $331 million in the reported quarter.
Following the better-than-expected results, Target raised its earnings outlook for fiscal 2015, for which adjusted earnings are now envisioned in a band of $4.60 - $4.75 per share, up from the previous guidance of $4.50 - $4.65. For the third quarter fiscal 2015, the company expects adjusted earnings per share in the range of 79 – 89 cents.
Zacks Rank: Currently, Target carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Target’s shares are up 4.5% in pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the company’s better-than-expected results.
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