Target (TGT) 2Q18 Results: Beats Consensus Estimates and Raises Guidance

Executive Summary

• Target reported 2Q18 adjusted EPS of $1.47, beating the consensus estimate of $1.40. Revenues were $17.78 billion, up by 6.9% year over year and beating the consensus estimate of $17.31 billion.
• In-store comps were up by 4.5%, beating the 4.0% consensus estimate. Total comps increased by 6.4%, driven by 41% growth in digital sales.
• The company raised 2018 guidance for adjusted EPS to $5.30–$5.50, up from $5.15–$5.45 previously. Target now expects a low-single-digit increase in comps, compared to initial guidance of sales growth in the low-to-mid single digits.