Executive Summary

• Target reported 1Q18 adjusted EPS of $1.32, below the consensus estimate of $1.39. Revenues were $16.78 billion, up by 3.4% year over year, and roughly in line with the consensus estimate of $16.58 billion.
• Comps were up by 3.0%, beating the 2.8% consensus estimate, driven by a 3.7% increase in transactions, offset by a 0.6% decrease in transaction value. Digital sales grew by 28% and contributed 1.1% to comp growth.
• The company reaffirmed its 2018 guidance for a low single-digit increase in comps and adjusted EPS of $5.15–$5.45, compared to the consensus estimate of $5.28.