Bull case down but not out
May 31st, 2024
Target reported its Q1 2024 earnings on 2024/05/22.
Cutting their price target in response, Trussell argued that “the bull case on Target is down but not out.”
Earnings Report
For Q1 2024, Target reported:
- EPS of $2.03, which missed the Zacks Consensus Estimate and Q1 2023, both $2.05, by 0.98%.
- Revenue of $24.531B, which beat the Zacks Consensus Estimate of $24.517B, but missed Q1 2023’s $25.322B by 3.1%.
- Comparable sales down 3.7% Y/Y.
Management guided:
For Q2 2024:
- EPS of $1.95 to $2.35, compared with Q1 2023’s $1.80.
- Comparable sales flat to up 2%.
For FY 2024:
- EPS of $8.60 to $9.60, compared with FY 2023’s $8.94.
- Comparable sales flat to up 2%.
Chair & CEO Brian Cornell commented: “Our Q1 financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in Q2.
“Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfillment services.
“Consumers continue to respond to the newness and value that we offer across our shopping experience, and we’re pleased with early results from the relaunch of Target Circle.
“Looking ahead, our team will deliver for our guests through lower prices, a seasonally relevant assortment, ease and convenience, as we keep investing in our strategy and efficiency initiatives to get back to growth and deliver on our longer-term financial goals.”
Chart
*We have also uploaded our latest monthly research and commentary discussing key updates on the economy and markets, new highs in the equity markets, treasury yields and more…. CLICK HERE to read now