Target Makes An Earnings Turnaround But Slashes Outlook
Portfolio Pulse from Upwallstreet
Target Corporation (TGT) beat Q2 earnings estimates but fell short on revenue, despite efforts to compete with Amazon (AMZN). The company slashed its full-year outlook due to ongoing competition for price-conscious shoppers. TJX Companies (TJX) exceeded expectations for both revenue and profits. Target's Q2 revenue fell about 5% to $24.77 billion, missing the expected $25.16 billion. Net income rose to $835 million, rebounding from $183 million in the comparable quarter of 2022. Comparable sales dropped 5.4%, more than the expected 3.7% drop. Target's outlook is gloomier than expected, with the company expecting comparable sales to drop in mid-single-digits and EPS to be between $7 and $8 for the full fiscal year.
August 16, 2023 | 2:30 pm
News sentiment analysis
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NEGATIVE IMPACT
Target's Q2 earnings beat estimates but revenue fell short. The company also slashed its full-year outlook.
Target's lower than expected revenue and reduced full-year outlook could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Home Depot's view that inflation is cooling contrasts with Target's gloomier outlook.
Home Depot's view on inflation is mentioned in contrast to Target's outlook, but the news does not directly impact its stock price.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 20
POSITIVE IMPACT
Amazon's Prime Day in July was the biggest to date, boosting its quarterly results and guidance.
Amazon's successful Prime Day and improved guidance could positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TJX Companies exceeded expectations for both revenue and profits in Q2.
TJX's better than expected revenue and profits could positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50