Target Stock Soars On Q2 Earnings: Higher Margins, Lower Inventory And More
Portfolio Pulse from Shivani Kumaresan
Target Corp (NYSE:TGT) reported a Q2 FY23 sales decline of 4.9% YoY to $24.77 billion, missing the analyst consensus of $25.18 billion. However, gross margin expanded by 550 basis points to 27% due to lower costs and retail price increases. Operating income margin rate was 4.8%, higher than last year, and operating income increased by 273% to $1.2 billion. Adjusted EPS of $1.80 beat the analyst consensus of $1.39. The company lowered its FY23 adjusted EPS guidance and expects a mid-single-digit decline in comparable sales for the remainder of the year.
August 16, 2023 | 11:28 am
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Despite a sales decline, Target's Q2 FY23 results showed improved margins and operating income, beating EPS estimates. However, the company lowered its FY23 guidance, which may concern investors.
Target's sales decline may negatively impact the stock. However, the improved margins and operating income, along with the beat on EPS estimates, could offset this. The lowered guidance for FY23 might cause some concern among investors, potentially impacting the stock price.
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