Stocks

Target Corporation Misses Estimates, Lowe’s Companies, Inc. In Line On EPS

Target Corporation (NYSE:TGT) and Lowe’s Companies, Inc. (NYSE:LOW) released their latest earnings reports before opening bell this morning. Target posted earnings of $1.52 per share and $21.63 billion in revenue. Analysts were expecting earnings of $1.54 per share and $21.75 billion in revenue. In the fourth quarter of 2014, adjusted earnings came in at $1.50 per share, while sales amounted to $21.75 billion.

Lowe’s reported adjusted earnings of 59 cents per share, which was in line with consensus, and $13.2 billion in revenue, which beat the consensus at $13.07 billion. In the fourth quarter of 2014, the home improvement retailer posted 46 cents per share in adjusted earnings and $12.5 billion in sales.

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Lowe’s reported adjusted earnings of 59 cents per share, which was in line with consensus, and $13.2 billion in revenue, which beat the consensus at $13.07 billion. In the fourth quarter of 2014, the home improvement retailer posted 46 cents per share in adjusted earnings and $12.5 billion in sales.

Target sees solid growth

Target’s comparable store sales climbed 1.9% in the fourth quarter on the back of a 1.3% increase in traffic. Sales through the big box retailer’s digital channel climbed 34% year over year, adding 1.3 percentage points to comparable sales growth. Comparable sales in signature categories climbed more than three times faster than the overall average.

For the current quarter, Target expects GAAP and non-GAAP earnings from continuing operations to fall between $1.15 and $1.25 per share, compared with the year-ago quarter’s $1.01 GAAP earnings and $1.10 adjusted earnings.

Target shares slipped by 0.97% to $73.25 in premarket trading.

Lowe’s hit by impairment charge

Lowe’s GAAP earnings tumbled from 46 cents in the year-ago quarter to 1 cent per share in the fourth quarter of 2014. The company said this morning that a $530 million impairment charge related to the exit of its joint venture in Australia weighed on its profits during the quarter. Comparable store sales climbed 5.2% year over year in the fourth quarter, while U.S. comparable sales climbed 5.5% for the quarter.

The company estimates earnings for this year at $4 per share, which is slightly ahead of the consensus at $3.97. Management expects about a 6% increase in sales, including the 53rd week in the fiscal year. Comparable store sales are expected to rise by about 4%.

Shares of Lowe’s slipped by as much as 3.27% to $65.70 in premarket trading.

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