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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.