Overview

* Target ( TGT ) Q3 net sales fell 1.5% yr/yr, slightly missing analyst expectations

* Adjusted EPS for Q3 beat analyst expectations

* Company Q3 net income missed analyst estimates

Outlook

* Target ( TGT ) expects Q4 sales to decline by low-single digits

* Target ( TGT ) forecasts full-year GAAP EPS of $7.70 to $8.70

* Target ( TGT ) projects full-year Adjusted EPS of $7.00 to $8.00

Result Drivers

* DIGITAL SALES - Digital comparable sales grew 2.4%, driven by over 35% growth in same-day delivery via Target Circle 360

* NON-MERCHANDISE GROWTH - Non-merchandise sales increased nearly 18%, with Roundel, membership, and marketplace revenues growing double digits

* DISCRETIONARY SPENDING - Continued softness in discretionary spending impacted overall sales, despite growth in Food & Beverage and Hardlines

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Slight $25.27 $25.32

Miss* bln bln (26

Analysts

)

Q3 Beat $1.78 $1.72

Adjusted (29

EPS Analysts

)

Q3 EPS $1.51

Q3 Net Miss $689 mln $784.54

Income mln (27

Analysts

)

Q3 Gross 28.20%

Margin

Q3 Miss $948 mln $1.12

Operatin bln (28

g Income Analysts

)

Q3 Miss $859 mln $1.03

Pretax bln (25

Profit Analysts

)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 22 "hold" and 6 "sell" or "strong sell"

* The average consensus recommendation for the discount stores peer group is "buy."

* Wall Street's median 12-month price target for Target Corp ( TGT ) is $100.00, about 11.5% above its November 18 closing price of $88.53

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)