NEW YORK (TheStreet) -- Shares of Target Corp. (TGT) are flat in heavy volume trading after reporting that its net income slid 16% to $418 million, or 66 cents per share, from $498 million, or 77 per share cents, a year earlier
Analysts had projected 71 cents on average, according to Bloomberg data.
However, same-store sales didn't fall as much as predicted, signaling to investors that a comeback may be under way, Bloomberg said.
The company is dealing with a troubled Canadian division and the theft in the last quarter of 40 million payment card numbers by hackers.
Target lowered its annual earnings forecast to $3.60 to $3.90 a share, down from a previous range of up to $4.15. It projected adjusted earnings of 85 cents to $1 per share for the second quarter, compared with an average estimate of about $1.03.
"We are not where we need to be," said interim CEO John Mulligan on a conference call this morning. "The progress is great to see, but it's small progress."
For now, the company is holding off on stock buybacks, and said it probably wouldn't initiate any repurchases before the second half of the year.