Target Beats Predictions and Analyst's Estimates With Fourth Quarter Earnings
February 23, 2012 9:55 AM
Target (NYSE: TGT) reported diluted earnings per share of $1.45 in the fourth quarter, higher than the company's $1.35 to $1.43 guidance and toping analysts estimates of $1.40. The Minneapolis-based retailer reported earnings before the market opened this morning.
Earnings decreased 5.2% from $1.04 billion to $0.98 billion in the fourth quarter. Target plans to open Canadian stores in 2013, resulting in market-entry related expenses of $40 million for the fourth quarter and $122 million for the year.
Sales increased quarter-over-quarter by 3.3% to $20.9 billion for the fourth quarter. Net sales increased year-over-year by 4.1% to $68.5 billion.
Target announced anticipated $4.55 to $4.75 adjusted earnings per share for 2012. In 2011 the company had basic earnings of $4.31 a share, 6.9% higher than 2010's $4.03 a share. First quarter 2012 Target expects to earn $0.97 to $1.07 per share with further expenses related to expansion into the Canadian markets.
Target shares have climbed since the first of the year, rising from $51.12 to $52.97. The shares fell 1 cent Wednesday, the day before the company announced earnings. Stock is trading at $53.05 in pre-market trading. It has traded between $46 and $56 for the past year.
