retail giant the goal (TGT) announced a significant third-quarter earnings surprise early Wednesday.Dow Jones Big Box Pier walmart (WMT) reported Thursday morning. TGT stock soared premarket on Wednesday. Walmart stock rose slightly and was trading in buy territory.
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Retailers are rolling out products for the all-time important holiday shopping season. After posting strong gains at the beginning of the year, the industry suffered a sharp decline in the second quarter due to weak consumer spending. Rising losses from organized crime and retail theft continue to weigh on profits.
However, as sales increase during the holiday season, online spending during Cyber ​​Week 2023, which includes Thanksgiving, Black Friday, and Cyber ​​Monday, will be driven by a record $12 billion in Cyber ​​Monday sales, up 4.8%. Adobe predicts this will increase to $37.2 billion. From last year. Black Friday online sales alone are projected to increase by 5.7% from 2022 to $9.6 billion.
Target revenue
Target reported that total revenue decreased 4.2% to $25.4 billion, while profit increased 36.4% to $2.10 per share. Earnings far exceeded FactSet’s earnings estimate of $1.47 per share. And this result slightly exceeded his $25.3 billion revenue estimate.
The results marked Target’s second straight increase in profits after six consecutive quarters of declines.
Comparable company sales for the period decreased by 4.9%. This was driven by a 6% decline in comparable digital sales. Same-store sales decreased 4.6%.
Overall sales (total target purchases from customers) decreased 4.3% to $25 billion.
CEO Brian Cornell said in a release that Target was able to achieve results despite a “very challenging external environment.” Sales were in line with company forecasts, and profits were significantly higher than company forecasts due to efficiency and inventory management efforts.
For the fourth quarter, Target expects a “broad-based” mid-single-digit decline in like-for-like sales. The company expected earnings per share of $1.90 to $2.60 for the quarter.
Analysts at FactSet expect fourth-quarter earnings to rise 18% to $2.23 per share, with revenue down 1% to $31.69 billion.
TGT stock
The stock rose 14% in premarket trading Wednesday. The stock price has been locked in a downward trend for 24 months, but it could bottom out from its early October lows.
If pre-market gains hold, the stock would be poised for its most aggressive move above resistance since February.
TGT stock has fallen nearly 26% this year through Tuesday’s close.
walmart
Walmart’s profit growth slowed to 4% in Q2 2024 after two quarters of accelerating double-digit growth. Revenue growth has been in the mid-to-high single digits for the past five quarters. Still, the results beat expectations for a 3.4% decline in profit on a 4.8% increase in sales.
Analysts surveyed by FactSet expect Walmart’s earnings to rise 1.3% to $1.52 a share and sales to rise 4.5% to $159.65 billion.
walmart stocks
WMT stock rose 1.3% early Wednesday. The stock is trading in a cup-with-handle buy zone after breaking above the November 1st buy point of 164.33.
On the weekly chart, WMT stock is in a cup-based buy zone with an entry of 165.85.
The stock has increased more than 18% since the beginning of the year.
Follow Harrison Miller on X/Twitter for stock news and updates. @IBD_Harrison
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