by Christopher Freeburn | August 15, 2012 12:10 pm
Target (NYSE:TGT) announced on Wednesday that it earned $704 million during the second quarter, flat compared to the same period last year.
The discount chain recorded sales of $16.45 billion, up 3.5% compared to 2011.
EPS for the quarter was $1.06, which beat analysts who were looking for $1.01 a share, Reuters noted.
Shares of Target rose more than 2% on the news.
Target raised its earnings outlook for the year, from previous guidance of between $4.10 and $4.30 a share, to between $4.20 and $4.40 a share. It also predicted third-quarter profits of between 69 cents and 79 cents a share.
Wall Street is looking for full year and third quarter profits of $4.31 and 76 cents a share, respectively.
The company said same-store sales rose 3.1% at stores open at least twelve months.
Earnings for the quarter were trimmed by 9 cents due to expenses associated with the opening of stores in Canada.
Company officials noted that shoppers were using its REDcard debt and credit cards more often. The percentage of Target sales paid for with the cards increased from 8.7% last year, to 12.8%.
Last week discount chain rival Kohl’s (NYSE:KSS) posted lower second-quarter earnings that topped analysts’ estimates, but reduced its outlook for the year.
Target is part of InvestorPlace’s list of Dependable Dividend Stocks — a list of companies that are rock-solid when it comes to preserving capital and making regular dividend payments.
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