NEW YORK (TheStreet) -- Target Corp. (TGT) - Get Report stock is gaining by 1.82% to $75.34 in pre-market trading on Wednesday, after the Minneapolis-based retailer set its 2016 fiscal year earnings guidance above analysts' projections for the period.
Target guided for earnings of $5.20 to $5.40 per share, surpassing Wall Street estimates of $5.16 per share for the year ending in January 2017.
Additionally, Target reported lower-than-expected financial results for the fiscal 2015 fourth quarter before today's market open.
The retailer posted earnings of $1.52 per share for the quarter ended January 30, missing estimates by 2 cents.
Revenue declined 0.6% year-over-year to $21.63 billion for the latest quarter, falling short of estimates of $21.75 billion.
Comparable stores sales were up 1.9%, driven by a 1.3% increase in traffic and a 34% jump in digital sales. The digital channel contributed 1.3 percentage points to overall comparable store sales growth.
"With traffic growing for five consecutive quarters and our signature categories of style, baby, kids, and wellness leading our growth, Target's results demonstrate that we are focused on the right strategic priorities," CEO Brian Cornell said in a statement.
Separately, Target has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations.
You can view the full analysis from the report here: TGT
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