This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Target's Earnings Fall, Stock Slips

NEW YORK ( TheStreet) -- Similar to other big retailers in the quarter, Target (TGT - Get Report) tempered Wall Street expectations for the rest of the year, blaming soft consumer demand.

Target reported second-quarter net earnings of $611 million, or 95 cents a share on Tuesday. Profit fell 13%, while earnings per share fell 10.4% from the year-earlier quarter. Target's adjusted earnings of $1.19 a share excluded the earnings dilution related to its Canadian segment. Analysts, on average, expected the company to earn 96 cents, according to Thomson Reuters.

Sales rose 4% to $17.1 billion, missing analysts' projections of $17.3 billion.

Sales for the U.S. segment inched just 2.4% higher to $16.8 billion over the prior year's quarter. Comparable-store sales rose 1.2% in the quarter.

Shares were falling 1.4% to $66.98 in premarket trading on Wednesday.

Also see: Best Buy, Dick's Sporting Goods: Tuesday's Retail Winners and Losers

Also see: J.C. Penney Reports Wider-Than-Expected Loss

Also see: Wal-Mart Disappoints on Earnings, Kohl's Profit Slips

"Target's second quarter financial results benefited from disciplined execution of our strategy and strong expense control, offsetting softer-than-expected sales," Target's Chairman and CEO Gregg Steinhafel said in the earnings release. "For the balance of this year, our U.S. outlook envisions continued cautious spending by consumers in the face of ongoing household budget pressures. In Canada, where we are only five months into our market launch, we continue to learn, adjust and refine operations in our existing stores as we prepare to open another 56 stores by year-end."

The Minneapolis-based discount retailer tempered earnings expectations for the rest of the year. The company expects adjusted earnings for the third quarter to range between 80 cents and 90 cents a share and GAAP earnings to range between 55 cents to 65 cents. Wall Street is expecting the company to report earnings of 88 cents a share, according to Thomson Reuters.

For the full year, Target said adjusted EPS will be near the low end of its previous guidance of $4.70 a share to $4.90 a share. GAAP earnings are expected to be approximately 95 cents lower than adjusted EPS, due to earnings dilution related to the Canadian segment, and losses related to the early retirement of debt offset by accounting gains related to the sale of its consumer credit card receivables portfolio to TD Bank (TD) in March.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.

>To submit a news tip, email: tips@thestreet.com.



Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
TGT $78.20 0.62%
AAPL $126.41 -1.66%
FB $81.21 0.39%
GOOG $575.33 0.34%
TSLA $200.63 -0.89%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs