Earnings Preview: Target

| About: Target Corporation (TGT)

Target (NYSE:TGT) is expected to report Q2 earnings before the open on Wednesday, August 15, with a conference call scheduled for 10:30 am ET.


Analysts are looking for EPS of $1.01 on revenue of $16.75B. The consensus range is 98c-$1.05 for EPS, and revenue of $16.45B-$16.88B, according to First Call. After reported better than expected adjusted Q1 EPS of $1.11, the company raised its FY12 adjusted EPS view to $4.60-$4.80, consensus $4.31, and forecast Q2 adjusted EPS $1.04-$1.14. The company, which guided a 10c impact in Q2 and 50c impact on FY for expenses related to the company's Canadian market entry, said it expected Q2 same-store sales would be up around 3% with FY SSS up "3% or a little more." Target said it was on track for $8 or more in EPS and $100B or more in sales by 2017. During the quarter, Target reported June SSS up 2.1% and said it was on track to deliver Q2 sales and adjusted EPS in line with guidance; July SSS and Q2 SSS increased 3.1%, the company said.

Analyst Views

Cleveland Research recently trimmed Target estimates citing a softer-than-expected finish to the quarter. The firm said mix shifts were more pronounced along with competitive challenges. Citigroup also downgraded Target to Neutral from Buy citing a more cautious macro outlook for the second half of 2012 and concerns over this year's back-to-school season. Analysts and investors will listen for comments on the company returning cash to shareholders, as well as the upcoming back-to-school and holiday season, and its 2013 entry into Canada.