Target Beats Up on Analysts Yet Again

Target (NYSE: TGT  ) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Target met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded slightly.

Gross margins grew, operating margins shrank, net margins contracted.

Revenue details
Target notched revenue of $22.73 billion. The 19 analysts polled by S&P Capital IQ hoped for revenue of $22.67 billion on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $21.29 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.65. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.53 per share. Non-GAAP EPS of $1.65 for Q4 were 15% higher than the prior-year quarter's $1.43 per share. GAAP EPS of $1.47 for Q4 were 1.4% higher than the prior-year quarter's $1.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.3%, 260 basis points better than the prior-year quarter. Operating margin was 7.3%, 70 basis points worse than the prior-year quarter. Net margin was 4.2%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $17.21 billion. On the bottom line, the average EPS estimate is $1.06.

Next year's average estimate for revenue is $76.26 billion. The average EPS estimate is $4.91.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,431 members out of 2,663 rating the stock outperform, and 232 members rating it underperform. Among 795 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 748 give Target a green thumbs-up, and 47 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Target is outperform, with an average price target of $69.41.

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