What to Look for in Target Earnings

By Chris Lange Updated Jan 13, 7:56AM EST · Published May 17, 12:50PM EDT

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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.

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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.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.