Why Is Target Stock Trading Higher Today?
Portfolio Pulse from Shivani Kumaresan
Target Corp (NYSE:TGT) shares rose after reporting Q4 FY23 revenue of $31.92 billion, surpassing estimates. Despite a 4.4% decline in comparable sales, gross margin expanded to 25.6% due to lower costs and favorable category mix. Operating income increased by 60.9% to $1.86 billion, with adjusted EPS of $2.98 beating estimates. The company holds $3.8 billion in cash and paid $508 million in dividends. Target did not repurchase any shares in Q4 but has $9.7 billion left in its repurchase program. FY24 EPS is projected at $8.60 - $9.60, with 0% - 2% growth in comparable sales. TGT shares surged 8.25% in premarket trading.
March 05, 2024 | 12:48 pm
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POSITIVE IMPACT
Target Corp reported higher than expected Q4 FY23 revenue and adjusted EPS, leading to an 8.25% increase in premarket trading. The company also announced a positive outlook for FY24.
Target's Q4 FY23 earnings report exceeded analyst expectations, particularly in revenue and adjusted EPS, which typically leads to positive investor sentiment and a short-term increase in stock price. The company's optimistic outlook for FY24, including expected growth in comparable sales and adjusted EPS, further supports a positive short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100