Target (TGT) Stock: Flying On Earnings

Target Corporation TGT Stock NewsTarget Corporation (NYSE: TGT) is having an overwhelmingly strong start to the trading session this mornning, and for good reason. The company released its earnings for the most recent quarter, showing incredible growth. Of course, the news excited investors, sending the stock screaming 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 an incredibly strong start to the trading session in the pre-market hours this morning after announcing its earnings. Here’s what we saw from the report:

  • Foot Traffic Growth – First and foremost, the big figure here was foot traffic growth. During the second quarter, the company saw an increase in traffic growth in the amount of 6.4%. That proved to be the strongest traffic growth seen since 2008, leading to comparable sales growth in the amount of 6.5%, the strongest increase in 13 years.
  • Earnings – During the second quarter, TGT also blew away earnings expectations. The company generated earnings in the amount of $1.47 per share with analysts only expecting to see earnings in the amount of $1.40 per share.
  • Revenue – Finally, revenue did not disappoint. During the quarter, analysts expected that revenue would come in at $17.23 billion. However, the company actually reported revenue in the amount of $17.55 billion.

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

We are extremely pleased with Target’s second quarter results, which demonstrate our guests’ excitement for the enhanced and differentiated shopping experience we’re building. For the second consecutive quarter, traffic growth is better than we’ve seen in well over 10 years, driving 6.5 percent comp growth – Target’s best in 13 years… We laid out a clear strategy at the beginning of 2017, and throughout this year we’ve been accelerating the pace of execution. We’re on track to deliver a strong back half and we’ve updated our full year guidance to reflect the strength of our business and the consumer economy. As we look ahead to 2019, we expect to achieve scale across the full slate of our initiatives – creating efficiencies and cost-savings, further strengthening our guest experience and positioning Target to continue gaining market share.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Target, the news proved to be overwhelmingly positive. After all, the company not only beat earnings and revenue expectations, it showed incredibly strong growth in traffic and comparable sales. So, it only makes sense that investors are excited and pushing the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:42), TGT is trading at $87.75 per share after a gain of $4.48 per share or 5.38% thus far today.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

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 bring growth to their stores as their work seems to be panning out. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!

* indicates required

Leave a Comment