Target Corporation 2Q 17 Earnings, Guidance Boost Shares

Target Corporation 2Q 17 Earnings, Guidance Boost Shares
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Target 2Q 17 earnings were released before opening bell this morning. The big box retailer reported adjusted earnings of $1.23 per share on $16.43 billion in revenue, compared to the consensus estimates of $1.19 per share and $16.3 billion in revenue. In last year’s second quarter, Target Corporation (NYSE:TGT) reported $16.17 billion in sales.

Target 2Q 17 earnings

On a GAAP basis, Target 2Q 17 earnings came in at $1.22 per share, up from $1.16 per share in the year-ago quarter. Comparable store sales grew 1.3% year over year, while analysts were expecting a much smaller increase of about 0.5%. Target said a 2.1% increase in traffic drove the growth in comparable store sales. Comparable digital channel sales grew 32% year over year, compared to a 16% increase in the year-ago quarter.

“We continue to focus on our long-term strategy, as we work to transform every part of our business and build an even better Target that will thrive in this new era in retail,” Target Chairman and Chief Executive Brian Cornell said in a statement. “While our recent results are encouraging, we will continue to plan prudently as we invest in building our brands, our digital channel, the value we provide our guests and elevating service levels in our stores.”

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Target’s guidance smashes the consensus

Target management also released guidance for the third quarter. They expect comparable store sales for both the third and fourth quarters to be within the range recorded during the first and second quarters. Target also guided for full-year comparable sales growth to be about flat with last year, plus or minus 1%.

Target also projects both GAAP and adjus