Target stock rallies as earnings exceed expectations

American supermarket chain Target Corporation (NYSE: TGT) announced the latest earnings results before the opening bell on Wall Street on Tuesday.

Target reported revenue of $31.919 billion for the previous quarter vs. $31.827 billion expected.

Earnings per share (EPS) also topped estimates at $2.98 vs. $2.416 per share expected.

Revenue and EPS increased by 1.6% and 57.67% year-over-year respectively.

The company achieved full-year revenue of $105.803 billion in 2023, down from $107.588 billion in 2022.

Company overview

• Founded: June 24, 1902
• Headquarters: Target Plaza Minneapolis, Minnesota, United States
• Number of employees: 440,000 (2023)
• Industry: Retail
• Key people: Brian Cornell (Chairman & CEO)

CEO commentary

Target CEO, Brian Cornell had this to say to investors: “Our team’s efforts changed the momentum of our business, further improving our sales and traffic trends in the fourth quarter while driving profitability well ahead of expectations.”

“Throughout the season, guests responded to newness, value, and the inspiration and ease of our in-store and digital shopping experience. Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time. We’ll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond,” Cornell added.

Stock reaction

The stock rallied by over 11% after the latest financial results were announced, trading at $168.20 a share – the highest level since April 2023.

Stock performance

• 5 day: +10.37%
• 1 month: +16.15%
• 3 months: +26.24%
• Year-to-date: +17.79%
• 1 year: +3.03%

Target stock price targets

• JP Morgan Chase & Co.: $157
• Telsey Advisory Group: $160
• Oppenheimer: $170
• Wells Fargo & Company: $165
• Stifel Nicolaus: $153
• Gordan Haskett: $170
• Morgan Stanley: $165
• TD Cowen: $148
• BMO Capital Markets: $130
• Royal Bank of Canada: $157
• Citigroup: $142
• Jefferies Financial Group: $135
• Tigress Financial: $180
• Evercore ISI: $130
• Bank of America: $135

Target Corporation is the 215th largest company in the world with a market cap of $77.39 billion, according to CompaniesMarketCap.

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Sources: Target Corporation, TradingView, MarketWatch, MarketBeat, CompaniesMarketCap