UPDATE: Target Shares Gain After Upbeat Q3 Results

Shares of Target

rose more than 3% in pre-market trading after the company reported stronger-than-expected third-quarter earnings. The Minneapolis, Minnesota-based company posted quarterly earnings of $352 million, or $0.55 per share, compared to $341 million, or $0.54 per share, in the year-ago period. Excluding certain items, the company's earnings slipped to $0.54 per share from $0.56 per share. The company in August had expected earnings of $0.40 to $0.50 per share. Its sales climbed 2.8% to $17.73 billion. However, analysts were expecting earnings of $0.48 per share on revenue of $17.56 billion. U.S. segment sales rose 1.9% to $17.3 billion, while Canadian segment sales surged 43.8% to $479 million in the quarter. Sales at established stores in Canada gained 1.6% in the quarter, while sales at established U.S. stores climbed 1.2%. Target paid dividends of $330 million in the quarter, up 21.4% compared to $271 million last year. The company did not repurchase any shares of its common stock during the quarter. “We're pleased with our third quarter financial results, which were driven by better-than-expected performance in our U.S. Segment,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “We're encouraged by the improving trend we've seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum.” Target narrowed its FY14 earnings forecast and now projects earnings of $3.15 to $3.25 per share, versus its earlier forecast of $3.10 to $3.30 per share. For the fourth quarter, Target now expects earnings of $1.13 to $1.23 per share, versus analysts' estimates of $1.22 per share. Target shares climbed 3.02% to $69.55 in pre-market trading.