Target Beats Q2 Estimates, Raises Profit Forecast; Stock Surges 14%

Aug 21, 2024, 10:41 AM

Target Corporation reported strong second-quarter 2024 earnings, exceeding Wall Street expectations. The company's adjusted earnings per share (EPS) was $2.57, surpassing the estimated $2.18. Revenue reached $25.45 billion, higher than the anticipated $25.2 billion. Target's comparable sales increased by 2%, driven by improved traffic in stores and digital channels, with notable growth in apparel and beauty categories. The company reported an EBITDA of $2.40 billion. Following these results, Target raised its annual profit forecast, projecting an EPS range of $9.00 to $9.70 for fiscal year 2025, up from the previous guidance of $8.60 to $9.60. Target also provided guidance for Q3 2024, expecting an EPS range of $2.10 to $2.40. Despite the positive earnings report, Target provided a cautious sales outlook for the remainder of the year. The company's stock surged 14% in pre-market trading following the announcement.