NEW YORK (TheStreet) -- Shares of Target Corp. (TGT) are down by 0.69% to $77.82 in mid-morning trading on Tuesday, one day before the retail giant is scheduled to release its 2015 first quarter earnings results. Target will report before the market open on Wednesday morning.
Analysts are expecting the company to post a year-over-year increase in earnings and revenue for the most recent quarter.
Target has been forecast to report earnings of $1.03 per share on revenue of $17.08 billion for the quarter ended April 2015.
Last year, Target said it earned 70 cents per share on revenue of $17.05 billion for the 2014 first quarter.
In the previous week, Target announced it will sell its Target Commercial Interiors, a subsidiary that provides office furnishings and related business and commercial services to Omni Workspace Co., which is better known as A&M Business Interior. The value of the sale was not disclosed.
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Separately, TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TARGET CORP (TGT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 83.95% and other important driving factors, this stock has surged by 30.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- TARGET CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TARGET CORP increased its bottom line by earning $3.84 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $3.84).
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $2,389.00 million or 35.20% when compared to the same quarter last year. In addition, TARGET CORP has also modestly surpassed the industry average cash flow growth rate of 30.18%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Multiline Retail industry and the overall market on the basis of return on equity, TARGET CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: TGT Ratings Report