Target Corp. (NYSE: TGT) reported its fiscal third-quarter financial results before the markets opened on Wednesday. The company had $0.87 in earnings per share (EPS) on $17.61 billion in revenue. That compared to consensus estimates from Thomson Reuters that call for $0.86 in EPS on revenue of $17.57 billion. In the same period of the previous year, the retailer posted EPS of $0.54 and $17.73 billion in revenue.
For the third quarter, sales increased by just over 2% year over year, reflecting a 1.9% increase in comparable sales. Digital channel sales grew 20% and contributed 0.4 percentage points to comparable sales growth.
In terms of guidance, Target expects to have EPS in the range of $1.48 to $1.58, compared to the consensus EPS estimate of $1.54 for the fiscal fourth quarter.
During the third quarter, the company repurchased 12.1 million shares of common stock for a total of $942 million.
Brian Cornell, chairman and CEO of Target, commented on earnings:
We’re pleased with our third quarter financial results, as both sales and adjusted earnings per share were near the upper end of our expectations. The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target’s sales growth continues to be led by our signature categories: Style, Baby, Kids and Wellness. Our momentum is encouraging, especially in the face of stiffer prior-year comparisons. Our results highlight the benefit of a consistent, company-wide focus on our key strategic priorities, and that focus will continue to position Target well in the months and years ahead. As we look forward to the fourth quarter, our team is focused on strong execution throughout the holidays, and we are confident in our merchandising and marketing plans as we enter the most critical season of the year.
On the books, the company has cash and equivalents totaling $1.98 billion at the end of the period, compared to $718 million in the third quarter of the previous year.
Shares of Target closed Tuesday up 0.8% at $72.91, with a consensus analyst price target of $84.91 and a 52-week trading range of $66.50 to $85.81. Following the release of the earnings report, shares were down 1.4% at $71.90 in early trading indications on Wednesday.
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