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.”
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 adjusted earnings of 75 cents to 95 cents per share, versus the consensus of only 77 cents per share. Additionally, the company boosted its full-year outlook for earnings. Target expects GAAP earnings to be between $4.35 and $4.55 per share and adjusted earnings to be between $4.34 and $4.54 per share. The previous guidance was between $3.80 and $4.20 per share. The company explained that the 1-cent difference between the GAAP and adjusted numbers was due to income tax issues that were not included in adjusted earnings per share in the first half of this year.
After Target 2Q 17 earnings were released, the company’s stock rose by more than 3% to $56.20 in premarket trading.