Image Source: Unsplash

Target (TGT) is scheduled to report results of its third quarter before the market open on Wednesday, November 19. The company will host earnings conference call at 8:00 am EST. What to watch for: 

GUIDANCE: In August, Target backed its fiscal 2025 guidance calling for adjusted earnings per share of $7.00-$9.00 on revenue down low-single digits. Analysts currently expect $7.27 for EPS and $104.93B in revenue for the fiscal year. 

JPMorgan reduced Q3 same-store-sales forecasts and expects the retail earnings season "to be quite mixed." JPMorgan expects Target to lower its prior guidance and imply negative low-single-digit comps in Q4. 

CEO SUCCESSION: In conjunction with the Q2 earnings report, Target announced that COO Michael Fiddelke would succeed Brian Cornell as CEO, with Cornell transitionining to the role of executive chair of the board of directors. The appointments are effective February 1, 2026. "With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth. He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress," said Cornell said. 

JOB CUTS: Target is laying off around 1,000 corporate employees and cut 800 open roles, the company said. "The truth is, the complexity we've created over time has been holding us back. Too many layers and overlapping work have slowed decisions, making it harder to bring ideas to life," said incoming CEO Michael Fiddelke in a memo to staff. The layoff announcement to employees were marred by a technical glitch, during which the call's audio briefly failed. The glitch was the latest in a string of communication issues during Target's first major restructuring in nearly a decade, Bloomberg noted. 

The company hurt itself with multiple missteps in merchandising, marketing, etc., negatively impacting consumer impressions and experiences, and Truist believes that Target needs to accelerate its merchandise innovation and materially accelerate its investment spending, the analyst told investors in a research note. 

'STAMPEDE LIST': DA Davidson in October added the stock to its "Stampede list," citing "Equity/Debt Recapitalization" as a potential catalyst. The stock is down about 65% from its pandemic era high and down 34% year to date, trading at just 11.5-times forward consensus estimates, which is far below historical averages on an absolute and relative basis, the analyst tells investors in a research note. Under the leveraged buyout possibility, the acquirers would need to drive a 2.8% annual EBITDA dollar increase over the next five years to generate a required 25% five-year IRR, and while fundamentals remain challenged at Target, margins seem to be flattening out as guidance implies a better trend, the firm added.

More By This Author:

Here's What Wall Street Is Saying About Disney Ahead Of Earnings
Here's What Wall Street Experts Are Saying About Cisco Ahead Of Earnings
Wall Street's Top 10 Stock Calls This Week - Saturday, Nov. 8