The 10-second takeaway
For the quarter ended April 28 (Q1), Target met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins shrank across the board.
Target booked revenue of $16.87 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $16.81 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $15.94 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.04. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.02 per share. GAAP EPS of $1.04 for Q1 were 5.1% higher than the prior-year quarter's $0.99 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 30.9%, 50 basis points worse than the prior-year quarter. Operating margin was 7.6%, 30 basis points worse than the prior-year quarter. Net margin was 4.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.81 billion. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $73.30 billion. The average EPS estimate is $4.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,395 members rating the stock outperform and 234 members rating it underperform. Among 776 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 724 give Target a green thumbs-up, and 52 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 $63.44.
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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.