Target rises on annual forecast hike
TGT•Second-quarter results beat estimates
Q2 comparable sales grew 3.8%, versus an estimate of 2.5%.
Q2 adjusted EPS came in at $4.11, topping the estimate of $2.33.
Analyst reaction and stock performance
"Company is finally getting some real traction after four years of underperformance and should be well positioned heading into the holiday shopping season with the price conscious consumer," says the chief market strategist at B Riley Wealth.
As of the last close, the stock is up 56% year to date.
Higher sales outlook and raised EPS midpoint
Target now sees FY net sales growth at 5%, down from prior view of 4%.
It raises its annual EPS forecast mid-point by 75 cents, excluding tariff gains of $1.65, from a previous projection of $7.50-$8.50; analysts on average were expecting $8.50, according to data compiled by LSEG.
Shares reverse premarket losses after forecast hike
Shares of Target reverse premarket losses, up 5% at $159.50.
The big box retailer raises its annual sales forecast on turnaround efforts, including fresh merchandise and price cuts.
