Target Corp. (NYSE: TGT) is set to release its fiscal second-quarter earnings report before the markets open on Wednesday. Thomson Reuters consensus estimates are calling for $1.20 in earnings per share (EPS) on $16.32 billion in revenue. In the same period of last year, the retailer said it had EPS of $1.10 and $17.12 billion in revenue.
This is one of the most frequented stores in the country. In a given month, slightly more than a quarter of American consumers visit a Target shopping center. The store’s popularity is partially attributable to its advertising budget. The company spent $667.9 million on advertising in fiscal 2015, enough to rank among the top advertising spenders in the country that year. With locations in every state in the country except for Vermont, many Americans have relatively easy access to a Target store.
Many of the most popular stores in the country sell everyday products such as food. Target broadened its appeal in 1995 when it opened its first SuperTarget, a Target store that includes a grocery department. Today, the majority of Target locations also sell groceries.
About this time last year, Target shut down all its Canadian locations, putting about 17,600 employees out of work. While difficult, it closed a very unprofitable and ill-fated chapter in the company’s book, and it helps the company to move forward and concentrate on the very profitable U.S. business. Target has increased the focus on online sales, which currently totals right about 3% of total sales.
Prior to the release of the earnings report, a few analysts weighed in on Target:
- JPMorgan reiterated a Neutral rating.
- Jefferies reiterated a Hold rating with a $78 price target.
- Deutsche Bank reiterated a Hold rating with an $84 price target.
- Cleveland Research has a Neutral rating.
- Wolfe research has a Market Perform rating.
- Merrill Lynch reiterated a Buy rating with a $95 price target.
So far in 2016, Target has outperformed the broad markets, with the stock up over 4%. However, over the past 52 weeks the stock is actually down about 1%.
Shares of Target were trading down 0.6% at $74.19 on Tuesday, with a consensus analyst price target of $83.53 and a 52-week trading range of $66.46 to $85.81.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.