Target reported better-than-expected third-quarter results and raised its profit outlook, sending shares surging.
The big-box retailer earned $714 million, or an adjusted $1.36 a share as revenue rose 4.7 percent versus a year ago to $18.7 billion. Wall Street analysts surveyed by Refinitiv were expecting adjusted earnings of $1.19 on revenue of $18.49 billion.
Third-quarter comparable sales rose 4.5 percent year-over-year and comparable digital channel sales grew 31 percent, adding 1.7 percentage points to total comparable sales growth.
“Our third quarter results are further proof of the durability of our strategy, as we're seeing industry-leading strength across multiple metrics, from the top line to the bottom line,” Brian Cornell, chairman and CEO of Target, said in a statement.
Looking ahead, Target sees fourth-quarter comparable sales growth of 3 percent to 4 percent and adjusted earnings per share of $1.54 to $1.74.
The company now expects full-year adjusted earnings per share of $6.25 to $6.45, up from $5.90 to $6.20. Analysts were expecting full-year adjusted earnings per share of $6.18.
Target shares are up 67.7 percent this year compared to the S&P 500's 24.54 percent gain.