Earnings Preview: Target Corp.

Target Corporation (TGT) is expected to report Q3 earnings before market open Monday, Nov. 17, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for a profit of 49c on revenue of $15.24B. The consensus range is 43c to 54c for EPS, and revenue of $15.07B to $15.78B, according to First Call.

Analyst Views

The company recently reported October same-store sales declined 4.8% vs. Retail Metrics estimate of a 2.8% decline. "Sales for the month of October were very disappointing, with continued volatility in daily results," said Gregg Steinhafel, president and CEO. "We expect the recent challenging sales environment to continue into the holiday season and beyond as a result of the economic factors currently affecting consumer spending."

Between the faltering economy, soaring food and gas prices, limited credit, slumping home prices and worries about jobs, shoppers remain unnerved and have cut back spending on discretionary items. Instead of spending on higher-profit goods like cashmere sweaters, consumers are flocking to wholesale clubs and discount apparel chains for basics like laundry detergent.

On October 29, Pershing Square, a major shareholder that previously pushed the company to sell off part of its credit card portfolio to JP Morgan (JPM), asked the retailer to consider the spin-off of a separate publicly-traded REIT that would own substantially all of the land currently owned by Target. Target believes that moving assets to a REIT entity may hurt its liquidity, debt ratings and borrowing costs.