Target Releases Strong Q3 Report before “Cyber Week”
Uri Gruenbaum | Dec 01, 2014 10:15AM ET
Target (NYSE:TGT) released a strong third quarter earnings report on November 19th. The report beat expectations and share prices increased. Many interpreted this as a sign of Target’s recovery from last year’s data breach.
In the Q3 report, Target highlighted:
- Adjusted EPS of $0.54, beating the analyst consensus of $0.40-$0.50 but posting a 2.9% year-over-year decrease from $0.56.
- GAAP EPS of $0.55; a 2.7% year-over-year increase from $0.54.
- Total sales of $17.732 million; a 2.8% year-over-year increase from $17.258 million.
- For Q4 2014, Target is predicting an Adjusted EPS of $1.13 to $1.23.
Additionally, many analysts are looking forward to seeing how Target fares during the holiday shopping season. Target has already reported strong Thanksgiving Day traffic. In a move that many find controversial, Target started Black Friday early by opening stores at 6 p.m. on Thanksgiving Day. However it was the online sales that made a difference, with a reported 40% increase of Thanksgiving Day online sales from last year. Target is also expecting big gains today for Cyber Monday, which they have turned into “Cyber Week” with discounts on thousands of items through December 6th. Brian Cornell, Target Chairman and CEO, noted that new free shipping services are attributing to the successful holiday shopping season.
Some were encouraged by the promising Q3 report, such as
Target received mixed ratings amidst the Q3 report, but how will the stock be influenced by sales from Black Friday and Cyber Monday?
The top analyst consensus for Target is Hold.
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