Target Barrels Lower Towards 52 Week Lows On Wretched Guidance

I guess they didn’t have the testicular fortitude to compete and simply ceded share to others.

The Target miss, although delightful and meaningful, is just another notch in Jeff Bezos belt of disasters being afflicted unto others by Amazon. Jeff and his wacky eyes probably bulge with glee after reading these horrid earnings reports.

Nevertheless, earnings power is still strong at Target, but comps and guidance are coming down…a lot.

As such, shares are being harrowed in the pre-market, as the stock plunges towards annual lows.

Via Briefing

Reports Q1 (Apr) earnings of $1.29 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $1.19; revenues fell 5.4% year/year to $16.2 bln vs the $16.31 bln Capital IQ Consensus.

Comps +1.2% vs. +1.5-2.5% guidance (estimates near +1.6%); more than offset by the impact of the sale of the pharmacy and clinic businesses.

Comparable digital channel sales grew 23% and contributed 0.6 % points to comparable sales growth.
EBIT +4.9% to $1.32 bln.

EBITDA and EBIT margin rates were 11.5% and 8.2%, respectively, compared with 10.5% and 7.4%, respectively, in 2015.
First quarter gross margin rate was 30.9%, compared with 30.4% in 2015, reflecting the benefit of the sale of the Company’s pharmacy and clinic businesses, combined with the benefit of the Company’s cost savings initiatives, partially offset by investments in promotions.

Co issues downside guidance for Q2, sees EPS of $1.00-1.20, excluding non-recurring items, vs. $1.36 Capital IQ Consensus; comps flat to down 2% vs. ests near +1.9%.

Co sees FY17 EPS within $5.20-5.40 prior range achievable, excluding non-recurring items, vs. $5.27 Capital IQ Consensus Estimate.