Target Q3 Profit Rises, Results Beat Estimates - Quick Facts

(RTTNews) - Discount retailer Target Corp. (TGT) on Wednesday reported an increase in profit for the third quarter from last year on higher revenues. Both revenue and adjusted earnings per share beat analysts' estimates.

Target's third-quarter net earnings rose to $1.01 billion or $2.01 per share, from $714 million or $1.39 per share in the year-ago period.

Excluding items, adjusted earnings from continuing operations for the quarter were $2.79 per share, compared with $1.36 per share in the prior-year quarter.

Total revenue grew 21.3 percent to $22.63 billion from $18.67 billion last year.

On average, analysts polled by Thomson Reuters had a consensus estimate for earnings of $1.60 per share for the quarter on revenues of $20.93 billion. Analysts' estimates typically exclude special items.

Target's total comparable sales grew 20.7 percent in the third quarter, reflecting comparable stores sales growth of 9.9 percent and digital sales growth of 155 percent. Comparable traffic grew 4.5 percent, and average ticket grew 15.6 percent.

The company added that it continued to gain market share across all five of its core merchandising categories. Year to date, the company has gained more than $6 billion in market share.

During the first quarter, Target withdrew its fiscal 2020 outlook due to the unusually wide range of potential outcomes, in light of the highly fluid and uncertain outlook for consumer shopping patterns and the impact of COVID-19.