- Target anticipates flat comparable sales growth for the fiscal year, with estimates around +1.7%.
- Projected adjusted EPS for the year is between $8.80 and $9.80, compared to an estimate of $9.24.
- Net sales growth is expected to hover around 1% for the fiscal year.
- The company foresees a modest rise in operating margin rate compared to 2024.
- An effective tax rate is anticipated between 23% and 24%.
- Fourth-quarter results show a 1.5% increase in comparable sales versus a 4.4% decline year over year, exceeding the estimate of 1.18% growth.
- Digital sales growth for the fourth quarter reached 8.7%, slightly surpassing the estimate of 8.27%.
- Gross margin improved to 26.2%, ahead of the estimated 25.2%.
- EBIT for the quarter was reported at $1.50 billion.
- EBITDA stood at $2.26 billion, exceeding the estimate of $2.14 billion.
- Customer transactions increased by 2.1%, while the average transaction amount slightly declined by 0.6%, performing better than the estimated -1.02%.
- Digital sales constituted 22.8% of total sales.
- Total number of stores reported was 1,978, closely matching the estimate of 1,981.
- The operating margin for the quarter was 4.7%, marginally higher than the estimated 4.59%.
- Store comparable sales marginally decreased by 0.5%, in line with the estimate of -0.51%.
- Sales originating from stores accounted for 77.2% of the total, matching estimates.
- Adjusted EPS in the fourth quarter stood at $2.41, beating the estimate of $2.26.
- Operating income for the quarter was $1.47 billion, exceeding the estimated $1.42 billion.
- February net sales showed a slight decline amid ongoing consumer and tariff uncertainties, affecting profit expectations for the first quarter.
- Fourth-quarter net sales totaled $30,915 million.
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Target Corp on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Target Corp, highlighting the company’s strong performance in their recent reports. In the analysis titled “How Target Corporation’s Digital Power Play is Transforming Shopping & Boosting Stock Potential! – Major Drivers,” Target’s third-quarter earnings report showed a 2.4% traffic growth, indicating increased customer engagement and loyalty. The report also praised the company’s digital sector, which saw an impressive growth of nearly 11%.
In another report by Baptista Research titled “Target Corporation: Will The Target Circle Program Enhancements Drive Sales Growth? – Major Drivers,” the focus was on the company’s second-quarter earnings in 2024. The Chair and CEO, Brian Cornell, presented optimistic results, discussing financial health, leadership transitions, consumer engagements, and strategic directions. Baptista Research aims to evaluate various factors that could impact Target’s stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Target Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Target Corp shows a mixed long-term outlook across various factors. While the company receives solid scores in Dividend and Momentum, indicating a positive outlook in terms of dividend payments and market momentum, it faces challenges in terms of Value, Growth, and Resilience, with scores in these areas being lower. This suggests that investors may need to consider a balanced approach when evaluating Target Corp for long-term investment.
Target Corporation operates general merchandise discount stores and has a fully integrated online business in addition to its physical stores. The company also provides credit services through branded proprietary credit cards. With a diverse range of offerings, including general merchandise, food discount stores, and online services, Target Corp maintains a prominent presence in the retail sector. Considering its Smart Scores across different factors, investors should conduct a comprehensive analysis before making investment decisions related to Target Corp.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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