UPDATE: Target Tops Q4 Expectations

reported stronger-than-expected earnings for the fourth quarter. The Minneapolis, Minnesota-based company posted a quarterly loss of $2.64 billion, or $4.10 per share, versus a year-ago profit of $520 million, or $0.81 per share. Excluding one-time items, earnings from continuing operations came in at $1.50 per share. The company had earlier expected earnings from continuing operations of $1.43 to $1.47 per share. Its net sales gained 4.1% to $21.8 billion. However, analysts were expecting a profit of $1.46 per share on revenue of $21.63 billion. Target's sales at existing locations climbed 3.8%. EBITDA margin rates widened to 9.9% from 9.2%. Its gross margin rose to 28.5% from 27.6%, while overall transactions increased 3.2%. During the quarter, Target paid dividends of $330 million, a 21.6% rise versus $272 million in 2013. "We're pleased with our fourth quarter financial results, which were driven by better-than-expected sales and particularly strong performance in our signature categories-style, baby, kids and wellness," said Brian Cornell, chairman and chief executive officer of Target Corporation. "We're seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work." For the current quarter, the company expects earnings of $0.95 to $1.05 per share, versus analysts' estimates of $1.04 per share. Target shares gained 0.84% to $77.60 in pre-market trading.