The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Target met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share grew.
Gross margins expanded, operating margins dropped, and net margins dropped.
Target chalked up revenue of $21.29 billion. The 18 analysts polled by S&P Capital IQ foresaw sales of $21.23 billion on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $20.66 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.49. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.40 per share on the same basis. GAAP EPS of $1.45 for Q4 were 0.7% higher than the prior-year quarter's $1.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.8%, 310 basis points better than the prior-year quarter. Operating margin was 8.0%, 60 basis points worse than the prior-year quarter. Net margin was 4.6%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.53 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $72.95 billion. The average EPS estimate is $4.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,385 members rating the stock outperform and 236 members rating it underperform. Among 715 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 660 give Target a green thumbs-up, and 55 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 $57.77.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.