Target beats analysts estimate for earnings in Q4 but misses on the revenue’s front

Target Corporation announced its fourth-quarter performance results on Tuesday that beat analysts estimate for earnings but came out shy of the revenue forecast. The 8^th largest U.S retailer blamed weak sales in electronics, toys, and home goods units in the holiday season to have weighed on its quarterly revenue.

Following the earnings report, Target was seen trading around 3% down later on Tuesday. At the time of writing, Target is exchanging hands at around $106 per share in the stock market that marks an over 15% loss in 2020 so far. In 2019, its performance was reported largely upbeat with just a little under 100% growth in its stock.

Target’s Q4 Earnings Report Versus Analysts’ Estimates

According to Refinitiv, analysts were expecting the retailer to print $23.50 billion in revenue while the estimate for earnings per share (EPS) was highlighted at $1.65 in the fourth quarter. Experts had also forecast a 1.5% growth in Target’s same-store sales in the recent quarter. In its performance report on Tuesday, the company missed the analysts’ estimate for revenue-generating a lower $23.40 billion in Q4 but its EPS was announced at a higher than expected $1.69 (adjusted). In terms of same-store sales, Target’s fourth-quarter performance was in line with the analysts’ forecast.

At $834 million, Target’s net income grew just under 5% in Q4 as compared to $799 million recorded in the same quarter last year. Target’s Q4 revenue in 2018, on the other hand, was sharply lower at $22.98 billion. With a 1.5% growth, Target boasted the 11^th quarter in a row that recorded growth in terms of same-store sales.

Target’s Guidance For Fiscal First Quarter

In its guidance for the fiscal first quarter, the U.S retailer said that it now expects to make $1.55 to $1.75 of earnings per share while the same-store sales were forecast to gain by low single digits. Analysts also have a somewhat similar estimate of $1.66 per share of earnings and 2.7% growth in same-store sales for Target in the first quarter. Their estimate for quarterly revenue is currently at $18.19 billion.

For fiscal 2020, on the other hand, Target anticipates $6.70 to $7.0 of earnings per share versus a $6.87 forecast by the analysts. Target’s same-store sales growth estimate remains the same for this year while analysts expect a 3.2% increase on this front in 2020.

Target Corporation is currently valued at $53.63 billion and boasts a price to earnings ratio of 16.92.