General merchandise retailer Target (NYSE:TGT) will be announcing earnings results this Tuesday morning. Here’s what investors should know.
Target met analysts’ revenue expectations last quarter, reporting revenues of $25.27 billion, down 1.6% year on year. It was a mixed quarter for the company, with full-year EPS guidance beating analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
Is Target a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Target’s revenue to decline 1.5% year on year, improving from the 3.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally 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 multiple times over the last two years.
Looking at Target’s peers in the non-discretionary retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 5.6%, meeting analysts’ expectations, and Sprouts reported revenues up 7.6%, in line with consensus estimates. Walmart traded down 2.9% following the results while Sprouts’s stock price was unchanged.
Read our full analysis of Walmart’s results here and Sprouts’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the non-discretionary retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Target is up 3.6% during the same time and is heading into earnings with an average analyst price target of $107.28 (compared to the current share price of $113.22).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.