Target (TGT) Stock: Climbing On Sales Growth

Target Corporation (NYSE: TGT) is headed up in the trading session this morning, and for good reason. The company reported its earnings for the fourth quarter, benefiting from stronger foot traffic and beating estimates.

As you could imagine, the news excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from TGT stock as a result; and
  • what we’ll be watching for ahead.

TGT Announces Earnings

As mentioned above, Target is having a great day in the market today after strong foot traffic led to the company beating analyst expectations for the three months ending February 2, 2019. Here’s what we saw from the report:

  • Earnings – In terms of earnings, the company did overwhelmingly well. The company reported earnings per share in the amount of $1.53. Not only did the figure beat analyst expectations, it showed growth of 11.7% year over year.
  • Revenue – Revenue was also a hit, coming in at $22.977 billion. That figure proved to be modestly ahead of analyst expectations of $22.91 billion.
  • Same-Store Sales – TGT said that same store sales grew by 5.3%. This figure was well ahead of analyst expectations of same store sales growth of 5%.
  • Guidance – The company said that it expects for same-store sales to continuing growing at low to mid-single-digit rates for the first quarter and current year. The company is also expecting 2019 earnings to come in between $5.75 per share and $6.05 per share, well ahead of analyst expectations of $5.61 per share.

In a statement, Brian Cornell, Chairman and CEO at TGT, had the following to offer:

We’re very pleased with our fourth quarter performance, which capped off an outstanding year for Target. Thanks to the dedication of Target’s team, we delivered our strongest traffic and comparable sales growth in well over a decade, and our 2018 Adjusted EPS set a new all-time record for the Company.

We have been driving an ambitious agenda to transform our Company, evolve with our guests and drive strong growth. On every count we’ve been successful, and as we enter 2019, we will continue to lead the industry by adapting, innovating and delivering more for our guests and shareholders.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. This is especially the case when it comes to earnings news.

When it comes to Target, the news proved to be positive. After all, the company not only beat expectations with regard to same-store-sales growth, earnings and revenue, it guided for a strong 2019 year ahead.

So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:23), TGT is trading at $76.22 per share after a gain of $3.59 per share or 4.94% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on TGT. In particular, we’re interested in following the story surrounding the company’s continued work to expand sales and provide value for investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

What Do You Think?

Where do you think TGT is headed? Join the discussion in the comments below!

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