Target Corp. (NYSE: TGT | TGT Price Prediction) released its fiscal third-quarter financial results before the markets opened on Wednesday. The big-box retailer said that it had $2.79 in earnings per share (EPS) and $22.6 billion in revenue, blowing past consensus estimates of $1.60 in EPS and $20.93 billion in revenue. The same period of last year reportedly had $1.36 in EPS and $18.66 billion in revenue.
Management noted that the strong results in 2020 reflect the benefits of its multiyear effort to build a durable and flexible model, with a differentiated assortment and a suite of industry-leading fulfillment options.
Total revenue increased 21.3% year over year, reflecting sales growth of 21.3%, combined with an 18.1% increase in other revenue. Operating income was $1.9 billion in the third quarter, up 93.1% from $1.0 billion in the same period last year.
During the quarter, comparable sales grew 20.7% year over year, driven by comparable stores sales growth of 9.9% and digital sales growth of 155%. Comparable traffic grew 4.5%, and average ticket grew 15.6%.
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Another highlight from the report was that same-day services (Order Pick Up, Drive Up and Shipt) grew 217%. And more than 95% of Target’s third-quarter sales were fulfilled by its stores.
On the books, Target cash and cash equivalents totaled $5.996 billion at the end of the quarter, up from $2.577 billion at the end of the previous fiscal year.
The company did not provide any guidance, citing uncertainty surrounding COVID-19. However, consensus estimates are calling for $1.78 in EPS and $25.18 billion in revenue for the fiscal fourth quarter.
Target stock traded up 2.8% early Wednesday at $167.63 a share, in a 52-week range of $90.17 to $167.42. The consensus price target is $166.17.
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