Target Posts In-Line Q3 Earnings, Sales Beat Views

reported in-line earnings for the third quarter, but the company's sales exceeded analysts' estimates. The Minneapolis, Minnesota-based company reported a quarterly profit of $549 million, or $0.87 per share, compared to $352 million, or $0.55 per share, in the year-ago period. Excluding certain items, the company's earnings climbed to $0.86 per share from $0.79 per share. Its revenue rose 2.1 percent to $17.61 billion. However, analysts were expecting earnings of $0.86 per share on revenue of $17.57 billion. The average estimate among 108 Estimize users was for earnings of $0.88 per share and revenue of $17.66 billion. Its sales at stores open at least a year climbed 1.9 percent for the quarter. Digital channel sales surged 20 percent. During the quarter, Target repurchased 12.1 million shares of common stock at an average price of $77.87. "We're pleased with our third quarter financial results, as both sales and adjusted earnings per share were near the upper end of our expectations," said Brian Cornell, chairman and CEO of Target. "The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target's sales growth continues to be led by our signature categories: Style, Baby, Kids and Wellness. Our momentum is encouraging, especially in the face of stiffer prior-year comparisons. Our results highlight the benefit of a consistent, company-wide focus on our key strategic priorities, and that focus will continue to position Target well in the months and years ahead." Target expects Q4 earnings of $1.48 to $1.58 per share, versus analysts' expectations of $1.54 per share. For the year, Target now projects adjusted earnings of $4.65 to $4.75 per share, versus its prior forecast of $4.60 to $4.75 per share. Target shares gained fell 0.12 percent to $73.00 in pre-market trading.