General merchandise retailer Target (NYSE: TGT) will be announcing earnings results this Wednesday morning. Here’s what to look for.
Target missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $23.85 billion, down 2.8% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Target a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Target’s revenue to decline 2.2% year on year to $24.89 billion, a reversal from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.04 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 9 downward revisions over the last 30 days (we track 24 analysts). Target has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Target’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 2.3%, and Grocery Outlet reported revenues up 4.5%, falling short of estimates by 0.6%. Sprouts traded down 4.1% following the results while Grocery Outlet was up 42.9%.
Read our full analysis of Sprouts’s results here and Grocery Outlet’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 6.4% on average over the last month. Target is up 3.4% during the same time and is heading into earnings with an average analyst price target of $103.69 (compared to the current share price of $105.14).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
