- Target reported third-quarter earnings Wednesday that beat Wall Street expectations. The retailer also raised its full-year profit outlook.
- Shares soared as much as 12% in early trading on the news.
- “Our third quarter results are further proof of the durability of our strategy,” Target CEO Brian Cornell said in a release.
- Watch Target trade live on Markets Insider.
Shares of Target surged as much as 12% in early trading Wednesday after the company reported earnings that exceeded Wall Street’s expectations.
Here’s what the company reported versus what analysts surveyed by Bloomberg expected:
- Adjusted earnings per share: $US1.36 reported, versus $US1.19 (expected)
- Revenue: $US18.67 billion reported, versus $US18.22 billion (expected)
- Comparable sales: +4.5% reported, versus +3.5% (expected)
The company also raised its full-year profit guidance. Target now expects full-year adjusted earnings per share to fall between $US6.25 and $US6.45 per share, up from its previous guidance of $US5.90 to $US6.20 per share. Analysts had expected earnings between $US6.05 and $US6.40 per share.
“Our third quarter results are further proof of the durability of our strategy, as we’re seeing industry-leading strength across multiple metrics, from the top line to the bottom line,” Target CEO Brian Cornell said in a press release.
It’s also evidence that investments Target has made in updating stores, including opening 25 mini-stores with Disney in October, have paid off. The company also expanded its grocery options this year with the launch of its brand, Good & Gather. And, Target made improvements to its online experience and added same-day shipping through its website.
The earnings beat comes amid disappointing reports from department stores such as Kohl’s and JCPenney, which disclosed earnings earlier this week. Target’s big-box rival, Walmart, also reported an earnings beat last week, sending shares to a 52-week high.
Target is up 82% year to date.