Target Shares Jump After Earnings Beat, Guidance Raised

Target Corp. shares rallied 8% in premarket trading after the retailer reported third-quarter earnings that beat estimates and raised its guidance. Net income totaled $608 million, or $1.06 per share, up from $549 million, or 87 cents per share, for the same period last year. Adjusted earnings per share were $1.04, beating the 83-cent FactSet consensus. Revenue totaled $16.4 billion, down from $17.6 billion, but beating the $16.3 billion FactSet consensus. Same-store sales dropped 0.2% versus a FactSet estimate of down 1%. Target raised its fourth-quarter same-store sales guidance to a range of down 1% to up 1% from down 2% to flat. The retailer expects both EPS and adjusted EPS of $1.55 to $1.75. The FactSet consensus is for a same-store sales decline of 0.8% and EPS of $1.60. Target shares are down 1.6% for the year so far while the S&P 500 Index is up 6.7% for the same period.