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Market Overview

Earnings Outlook For Target


On Tuesday, March 02, Target (NYSE:TGT) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect Target's EPS to be near $2.54 on sales of $27.42 billion. In the same quarter last year, Target reported earnings per share of $1.69 on revenue of $23.40 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 50.3%. Sales would be up 17.19% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.60 1.62 0.68 1.66
EPS Actual 2.79 3.38 0.59 1.69
Revenue Estimate 20.93 B 20.09 B 19.00 B 23.49 B
Revenue Actual 22.63 B 22.98 B 19.61 B 23.40 B

Stock Performance

Shares of Target were trading at $183.17 as of February 26. Over the last 52-week period, shares are up 75.37%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Target is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings