Target’s stock tumbles 6.9% premarket after Q1 results

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Target’s stock tumbles as profit miss offsets sales beat

Shares of Target Corp. tumbled 6.9% in premarket trade Wednesday, after the discount retailer reported a fiscal first-quarter profit that missed expectations, although sales beat. Net income for the quarter to May 5 rose to $718 million, or $1.33 a share, from $678 million, or $1.22 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.32, below the FactSet consensus of $1.39. Revenue rose 3.4% to $16.78 billion, topping the FactSet consensus of $16.58 billion. Same-store sales grew 3.0%, beating the FactSet consensus of a 2.8% increase, as traffic rose 3.7%. ” Strong sales growth in our home, essentials and food & beverage categories offset the impact of delayed sales in temperature-sensitive categories, which accelerated rapidly in recent weeks as weather improved across the country,” said Chief Executive Brian Cornell. Looking ahead, Target expects second-quarter adjusted EPS of $1.30 to $1.50, surrounding the FactSet consensus of $1.35, and projects same-store sales growth in the low-to-mid single-digit percentage range, compared with expectations of a 1.9% rise. The stock has run up 15.7% year to date through Tuesday, while the SPDR S&P Retail ETF has edged up 1.7% and the S&P 500 has gained 1.9.

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