Target Steady after Raising Full Year Profit Outlook

Shares of Target Corporation (NYSE:TGT) are steady in morning trade after the company raised its full year profit outlook ahead of analyst estimates. The company said for fiscal year 2012, it expects adjusted earnings of $4.55 to $4.75 per share. This is well ahead of analyst forecasts that called for $4.27 per share in full year profits.

For the quarter ended Jan. 28 the company reported adjusted earnings of $1.49 per share that is up 8.3% from the year ago period. Revenue rose 3.3 percent to $20.94 billion. Revenue at stores opened at least a year rose 2.2 percent for the period. Target said Thursday that gross profit margin slipped to 28.4 percent in the fourth quarter, down from 28.7 percent in the year-ago period.

The results beat lowered analyst forecasts that called for $1.40 per share in profits on revenues of $21.23 billion. Analysts had lowered their forecasts in January following a profit warning from the company after discounting in the holiday shopping season hurt margins.

“Target generated strong financial performance in 2011, overcoming sluggish economic growth, restrained consumer spending and an intensely promotional holiday season,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation.

“For the full year, our U.S. businesses generated 14.3 percent growth in adjusted earnings per share, and we experienced our strongest growth in comparable-store sales since 2007. As we look ahead to 2012, we’ll continue to focus on bringing our “Expect More. Pay Less.” brand promise to life for our guests, providing unique, well-designed merchandise while driving value and loyalty with initiatives like 5% Rewards and REDcard Free Shipping. In addition, we’ll continue to invest in our store, online and mobile channels, open our first CityTarget locations in July and prepare for the opening of our first Canadian Target stores in early 2013.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.