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Target (TGT) to Report Q4 Earnings: Factors to Consider
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Target Corporation (TGT - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results on Mar 1, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $31,533 million, indicating growth of 11.3% from the prior-year reported figure.
The bottom line of this general merchandise retailer is anticipated to increase year over year. We note that the Zacks Consensus Estimate for earnings per share for the quarter under review has been stable at $2.86 over the past 30 days. The figure suggests an increase of 7.1% from the year-ago period.
For fiscal 2021, the consensus mark for revenues is pegged at $106.5 billion, which indicates growth of 13.9% from last year. Again, the consensus mark for full-year earnings per share stands at $13.19, suggesting a meaningful improvement of 40% from the year-ago period.
Target has a trailing four-quarter earnings surprise of 19.7%, on average. In the last reported quarter, this Minneapolis, MN-based company surpassed the Zacks Consensus Estimate by 5.6%.
Key Factors to Note
Target’s robust product assortments across a wide range of categories, prudent store offerings and growing omni-channel retailing capacity are likely to have aided the retailer rake in robust traffic, and thus higher revenues.
Thanks to its one-stop shopping destination, customers have been opting for Target owing to its multi-category assortment of owned and exclusive brands as well as popular national brands. The company has been deploying resources to enhance omni-channel capabilities and adopt strategies to provide a seamless shopping experience through multiple channels. The company’s delivery services like doorstep delivery, curbside pickup or buy online and pick up at store, have been playing a crucial role in serving consumers better.
The company’s commitment to offering a unique shopping experience with safe and convenient options, including contactless Drive Up and Order Pickup, and same-day delivery with Shipt, are worth mentioning. Customers have been responding positively to such shopping tools. Markedly, it has been ramping up store openings and remodels, scaling up fulfillment services and enhancing supply chain capabilities. On its last earnings call, Target projected high-single-digit to low-double-digit growth in fourth-quarter comparable sales.
Clearly, the aforementioned factors instill optimism regarding the outcome of the results. However, margins still remain an area to watch. Impact of costs associated with digital fulfillment, supply chain and COVID-19 related expenses cannot be ruled out. We note that higher merchandise and freight costs did hurt the gross margin in the last reported quarter. Also, costs related to additional employee payments and benefits, and investments undertaken to preserve safety and health of customers and team members amid the coronavirus crisis may have weighed on margins in the quarter to be reported.
Target Corporation Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Target this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although Target carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With a Favorable Combination
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests growth of 39.5% from the year-ago quarter’s reported figure.
DICK'S Sporting Goods’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.31 billion, indicating an increase of 6% from the year-ago quarter. DKS has a trailing four-quarter earnings surprise of 104.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +9.69% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.45 suggests an increase of 39.4% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.08 billion, which suggests an increase of 53.2% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 20.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported figure.
Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.05 billion, which indicates an improvement of 14% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
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Target (TGT) to Report Q4 Earnings: Factors to Consider
Target Corporation (TGT - Free Report) is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 results on Mar 1, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $31,533 million, indicating growth of 11.3% from the prior-year reported figure.
The bottom line of this general merchandise retailer is anticipated to increase year over year. We note that the Zacks Consensus Estimate for earnings per share for the quarter under review has been stable at $2.86 over the past 30 days. The figure suggests an increase of 7.1% from the year-ago period.
For fiscal 2021, the consensus mark for revenues is pegged at $106.5 billion, which indicates growth of 13.9% from last year. Again, the consensus mark for full-year earnings per share stands at $13.19, suggesting a meaningful improvement of 40% from the year-ago period.
Target has a trailing four-quarter earnings surprise of 19.7%, on average. In the last reported quarter, this Minneapolis, MN-based company surpassed the Zacks Consensus Estimate by 5.6%.
Key Factors to Note
Target’s robust product assortments across a wide range of categories, prudent store offerings and growing omni-channel retailing capacity are likely to have aided the retailer rake in robust traffic, and thus higher revenues.
Thanks to its one-stop shopping destination, customers have been opting for Target owing to its multi-category assortment of owned and exclusive brands as well as popular national brands. The company has been deploying resources to enhance omni-channel capabilities and adopt strategies to provide a seamless shopping experience through multiple channels. The company’s delivery services like doorstep delivery, curbside pickup or buy online and pick up at store, have been playing a crucial role in serving consumers better.
The company’s commitment to offering a unique shopping experience with safe and convenient options, including contactless Drive Up and Order Pickup, and same-day delivery with Shipt, are worth mentioning. Customers have been responding positively to such shopping tools. Markedly, it has been ramping up store openings and remodels, scaling up fulfillment services and enhancing supply chain capabilities. On its last earnings call, Target projected high-single-digit to low-double-digit growth in fourth-quarter comparable sales.
Clearly, the aforementioned factors instill optimism regarding the outcome of the results. However, margins still remain an area to watch. Impact of costs associated with digital fulfillment, supply chain and COVID-19 related expenses cannot be ruled out. We note that higher merchandise and freight costs did hurt the gross margin in the last reported quarter. Also, costs related to additional employee payments and benefits, and investments undertaken to preserve safety and health of customers and team members amid the coronavirus crisis may have weighed on margins in the quarter to be reported.
Target Corporation Price, Consensus and EPS Surprise
Target Corporation price-consensus-eps-surprise-chart | Target Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Target this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although Target carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With a Favorable Combination
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.86% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests growth of 39.5% from the year-ago quarter’s reported figure.
DICK'S Sporting Goods’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.31 billion, indicating an increase of 6% from the year-ago quarter. DKS has a trailing four-quarter earnings surprise of 104.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +9.69% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.45 suggests an increase of 39.4% from the year-ago reported number.
Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.08 billion, which suggests an increase of 53.2% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 20.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported figure.
Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.05 billion, which indicates an improvement of 14% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.