Target (TGT) Reports Earnings Tomorrow: What To Expect

Radek Strnad /
2024/05/21 3:01 am EDT

General merchandise retailer Target (NYSE:TGT) will be reporting earnings tomorrow before the bell. Here's what you need to know.

Target met analysts' revenue expectations last quarter, reporting revenues of $31.92 billion, up 1.7% year on year. It was a mixed quarter for the company: Target blew past analysts' gross margin and operating profit expectations, which led to EPS outperformance versus Wall Street estimates. On the other hand, its earnings forecast for next quarter and the full year ending January 2025 missed analysts' expectations.

Is Target a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Target's revenue to decline 3.1% year on year to $24.53 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.05 per share.

Target Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Target has missed Wall Street's revenue estimates twice over the last two years.

Looking at Target's peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 6%, beating analysts' expectations by 2.1%, and Grocery Outlet reported revenues up 7.4%, topping estimates by 1.4%. Walmart traded up 8.1% following the results while Grocery Outlet was down 19.5%.

Read our full analysis of Walmart's results here and Grocery Outlet's results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 8.1% on average over the last month. Target is down 6.1% during the same time and is heading into earnings with an average analyst price target of $184.6 (compared to the current share price of $156.8).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.