Target Corp.’s Q4 Results, 2013 Outlook Edge Past Street’s Estimates (TGT)
Despite heavy promotions due to rising competition in the discount retailing sector and cautious consumer spending, Target Corporation (NYSE: TGT) reported better than expected results in the holiday season fourth quarter.
“We’re pleased with Target’s fourth-quarter performance, particularly in the face of a highly promotional retail environment and continued consumer uncertainty,” said Gregg Steinhafel, chairman, president, and CEO, in a statement.
For the quarter, the Minneapolis-based company reported a net income of $961 million, or $1.47 a share, compared to $981 million, or $1.45 a share, in the year earlier quarter. In the recently concluded quarter, Target Corp had lesser number of outstanding shares.
After adjusting onetime items, adjusted earnings or non-GAAP earnings came at $1.65 a share, compared to $1.43 a share, in the same period of last year.
Revenue during the quarter climbed 7% to $22.73 billion up from $21.29 billion, in the year ago period.
Analysts polled by Thomson Reuters were expecting earnings of $1.48 a share on revenue of $22.69 billion.
Looking ahead at fiscal 2013, Target expects non-GAAP earnings to be in the range of $4.85 to $5.05 a share, topping analysts’ consensus estimate for earnings of $4.83 a share, according to a data compiled by Thomson Reuters.
In the current quarter, the discount retail chain is expecting adjusted earnings of $1.10 to $1.20 a share, again higher than Street’s estimate of $1.05 a share.
Ever since Wal-Mart Stores Inc. (NYSE: WMT) said that its February sales got off to a worst start in last seven years due to rise in payroll taxes, delay in tax refunds and increased gas prices, investors were keenly waiting for Target Corp’s outlook to gauge the state-of-affairs of the U.S. consumer spending.