Target raises 2015 earnings forecast for second time

The company said second-quarter earnings were $753 million, or $1.18 per share for the three month period ended August 1. His tenure has coincided with four straight quarters of rising sales and customer visits, as the retailer continues to rebound from a 2013 data breach and several years where Target lost focus on the cheap-chic style it has been known for historically. He has been applauded for bringing out positive management and operational overhaul, including the exit of its flagging Canadian business. The company also botched a major expansion into Canada.

“While the momentum in our financial results is encouraging, we have much more to accomplish”, he comments in the press release.

Check back later for our full write up on Target’s earnings report!

The average estimate among 34 Estimize users was for earnings of $1.12 per share and revenue of $17.42 billion.

Target shares were up about 4 percent in premarket trading indications. Earlier this year, Cornell and other Target executives outlined a roughly $2 billion plan to grow the business with more efficient operations and a more compelling mix of products, such as re-upping its status for having fashionable and trendy apparel. That topped the 2.2 percent projected by analysts, according to Consensus Metrix. The clear solution would be to take control of its supply chain, he added. On Monday, Target said it was promoting its Chief Financial Officer John Mulligan to the newly created role of chief operating officer.

The company had earlier raised the lower end of its forecast by 5 cents to $4.50-$4.65.

If we look forward at the long term growth estimates for the company, research analysts are expecting current year earnings per share to be $4.73. The stock’s 50 day moving average is $81.64 and its 200 day moving average is $80.31. Exclusive of one-time expenditures, earnings per share from continuing operations increased from $1.01 per share to $1.22.

Net sales rose 2.8 per cent to US$17.4 billion, meeting Wall Street expectations. Target is trying to shed its reputation as being laggard in digital sales, and Mr. Cornell has set a goal of digital sales rising 40% a year over the next five years.

Department store chains Macy’s and Kohl’s both reported last week declines in second-quarter profit and weak sales as shoppers have been pulling back buying traditional items like clothing and gravitating more toward services or going out to eat. While concerns about an increase in interest rates by the Federal Reserve and slowing economies overseas have been weighing on consumer confidence, an improving job market has helped keep spending afloat. Overall, the number of transactions rose 1.6 percent.

11, 2015, photo, shows a Target store in Miami.