Target May Have Missed On Sales, But Investors Can Still Net $500 A Month: Here's How
Portfolio Pulse from AJ Fabino
Target Corp (NYSE:TGT) reported Q2 earnings with adjusted earnings of $1.80 per share, beating the $1.39 expectation, but revenues of $24.77 billion missed the $25.18 consensus estimate. Sales were down 4.9% YoY, with comparable sales down by 5.4%. However, Target's gross margin expanded to 27% and operating income increased 273% to $1.2 billion. The company issued $499 million in dividends, up from $417 million the previous year. To generate a monthly dividend check of $500 from Target, an investment of $175,953.08, or about 1,371 shares, would be needed.
August 16, 2023 | 4:38 pm
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NEUTRAL IMPACT
Target's Q2 earnings beat EPS expectations but missed on revenues. However, the company's gross margin expanded and it issued increased dividends, which could attract income-focused investors.
While Target's Q2 earnings were mixed, with a beat on EPS but a miss on revenues, the company's gross margin expansion and increased dividends could be seen as positive by investors, particularly those focused on income. However, the decline in sales could be a concern for growth-focused investors, potentially leading to a neutral short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100