Target (NYSE: TGT) reported earnings on Aug. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q2), Target met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded slightly.
Margins shrank across the board.
Revenue details
Target logged revenue of $16.78 billion. The 12 analysts polled by S&P Capital IQ anticipated net sales of $16.82 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $16.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.06. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $1.06 for Q2 were 2.9% higher than the prior-year quarter's $1.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 32.0%, 50 basis points worse than the prior-year quarter. Operating margin was 7.5%, 50 basis points worse than the prior-year quarter. Net margin was 4.2%, 10 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $16.96 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $73.32 billion. The average EPS estimate is $4.42.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,398 members out of 2,633 rating the stock outperform, and 235 members rating it underperform. Among 778 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 727 give Target a green thumbs-up, and 51 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Target is outperform, with an average price target of $63.72.
Can your retirement portfolio provide you with enough income to last? You'll need more than Target. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Target to My Watchlist.
