CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Target share price rises 5% on Q4 results revenue beat

Target reports better-than-expected earnings in its Q4 2018 results.

Target stock is up after releasing a better-than-expected Q4 earnings report. Target’s Q4 results beat Wall Street projections and the corporation its best full-year same-store sales since 2005.

Target results: key figures

Earnings per share (EPS) $1.53
Revenue $22.98 billion
Net income $799 million
Same- store sales +5.3%

Target share price is up 5% as Q4 results revenue beats estimates

Target’s Q4 earnings per share(EPS) were $1.53, slightly better than the expected $1.52 predicted by financial experts. Target’s revenue was $22.98 billion, surpassing the $22.96 billion Wall Street expected because of strong holiday sales and increased foot traffic in store locations. Same store sales also grew by 5.3%, more than the projected 5.1%.

Target’s net income was the only negative aspect of the earnings report. The net income decreased 26.5% to $799 million. The company’s chief executive officer, (CEO), Brian Cornell, touted the overall success of Target’s Q4 results.

‘We feel great about the progress, the investments that we’ve made in the stores, our brands and importantly in our team have paid off. And I think that we saw that in our full year 2018 results, but more importantly the guidance for next year,’ said Cornell.

Target’s Q4 results also grew because of its increase in e-commerce to compete with Amazon. The retailer’s online sales improved by 36% in 2018 as the store gave shoppers the option to order items online and pick them up in the stores. Cornell also noted how the chain’s investment in e-commerce helped lifted digital and brick-and-mortar sales in Target’s Q4 revenue.

‘We continue to see great performance both from a store standpoint and a digital standpoint,’ said Cornell.

What do Target’s Q4 results mean for their share price?

Target’s Q4 results could mean an increase in its share price. Target stock has already risen 5% after its positive earnings report.

How do Target’s Q4 results compare to other retailers?

Target’s Q4 results are positive, similar to Walmart. Walmart’s Q4 earnings report was also better-than-expected because of increased online sales during the holidays.

What is Target’s dividend yield?

Target’s dividend yield was high. The retailer returned $951 million to shareholders through dividends and share repurchases in Q4 2018. The total dividend payment for 2018 was $3.4 billion.

Target predicted a low single-digit increase in same-store sales for Q1 and a mid-single digit increase in net income. The retailer’s EPS are expected to be between $5.75 - $6.05. The estimate exceeds the financial experts' predictions of $5.61. Target’s revenue for Q1 is projected to be $17.38 billion.

Target's Q4 results rise through in-person and online sales

Target’s successful Q4 results show that US retail is still going strong. As long as brick-and-mortar stores invest in improving stores and also add online commerce to its sales strategy, customers and investors will be pleased.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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