NEW YORK (TheStreet) -- In what is increasingly a trend for retailers this season, Target (TGT) - Get Report missed its mark on the top- and bottom- line for the third-quarter, a symptom of weak consumer spending this year.
The discount retailer reported non-adjusted net income of 54 cents a share, 9 cents short of what analysts surveyed by Thomson Reuters had hoped for. Excluding one-time charges, the company earned 84 cents a share.
Revenue of $17.26 billion, 1.9% higher than a year earlier, missed expectations by $100 million. Comparable-store sales edged 0.9% higher in the U.S., lower than the 1.3% in gains expected.
"Target's third quarter financial results reflect continued strong execution in our U.S. Segment in an environment where consumer spending remains constrained," said CEO Gregg Steinhafel.
Ahead of the all-important holiday shopping season, Target tempered expectations, forecasting earnings of approximately $1.26 a share. Analysts hoped for fourth-quarter earnings of $1.45 a share.
For the full-year ending January, the Minneapolis-based business forecast earnings in the range of $4.59 to $4.69, downwardly revised from a previous range of $4.70 to $4.90.
In pre-market trading, shares fell 3.1% to $64.45.
TheStreet Ratings team rates Target Corp as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate Target Corp (TGT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: TGT Ratings Report