Target beats by $0.11, reports revs in-line; guides Q3 EPS in-line; raises FY16 EPS
- Reports Q2 (Jul) earnings of $1.22 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.11; revenues rose 2.8% year/year to $17.43 bln vs the $17.4 bln consensus.
- Comps +2.4% vs +2-2.5% guidance and +2.3% estimate, driven primarily by growth in comparable transactions.
- Comparable sales in signature categories (Style, Baby, Kids and Wellness) grew three times faster than the company average, resulting in comparable sales growth of four to five percent in both Home and Apparel. Digital channel sales increased 30 percent, contributing 0.6 percentage points to comparable sales growth.
- Digital channel sales grew 30 percent and contributed 0.6 percentage points to comparable sales growth.
- Co issues in-line guidance for Q3, sees EPS of $0.79-0.89, excluding non-recurring items, vs. $0.85 Capital IQ Consensus Estimate.
- Co issues upside guidance for FY16, raises EPS to $4.60-4.75, excluding non-recurring items, from $4.50-4.65 vs. $4.62 Capital IQ Consensus Estimate.