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Target (TGT) Lined Up for Q4 Earnings: Factors to Consider
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Target Corporation (TGT - Free Report) is likely to report an increase in the top line when it reports fourth-quarter fiscal 2023 results on Mar 5 before market open. The Zacks Consensus Estimate for revenues is pegged at $31,879 million, indicating an increase of about 1.5% from the prior-year reported figure.
The bottom line of this general merchandise retailer is also anticipated to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share for the quarter under review has been stable at $2.38. This consensus figure suggests a 25.9% increase compared to the earnings reported in the same period last year.
Target has a trailing four-quarter earnings surprise of 30.8%, on average. In the last reported quarter, this Minneapolis, MN-based company’s bottom line outperformed the Zacks Consensus Estimate by 41.9%.
Key Things to Note
In a bid to fortify its market presence and elevate sales performance, Target has been proactive in adapting its business operations to remain competitive. The company's strategic initiatives, including digital advancements, store investments and targeted merchandise actions to capture market share, are anticipated to have contributed to its overall performance. The company might have seen strength in frequency businesses.
Target's management has been proactive in implementing cost-control measures, collaborating with vendors and driving operational efficiencies. We anticipate that Target is likely to have registered margin expansion, thanks to cleaner inventory levels resulting in a reduction in markdown frequency and magnitude. Additionally, lower supply chain and freight costs are likely to have further contributed to margin improvement. We anticipate a gross margin expansion of 170 basis points in the final quarter.
However, Target faces several challenges, including declining comparable sales, softness in discretionary spending, inflationary pressures and shifts in consumer behavior. We anticipate a 5% decline in comparable sales in the fourth quarter.
Target Corporation Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Target this time. 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. However, that’s not the case here.
Target has a Zacks Rank #2 but an Earnings ESP of -0.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Costco (COST - Free Report) currently has an Earnings ESP of +1.58% and carries a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.60, up 9.1% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $59.2 billion, which indicates an increase of 7.1% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +1.12% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.16 suggests an increase of 38.1% from the year-ago reported number.
Ollie's Bargain’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $649.1 million, which suggests an increase of 18.1% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7%, on average.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.25 suggests a rise of 9.8% from the year-ago quarter.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.02 billion, indicating an increase of 9.9% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 9.4%, on average.
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Target (TGT) Lined Up for Q4 Earnings: Factors to Consider
Target Corporation (TGT - Free Report) is likely to report an increase in the top line when it reports fourth-quarter fiscal 2023 results on Mar 5 before market open. The Zacks Consensus Estimate for revenues is pegged at $31,879 million, indicating an increase of about 1.5% from the prior-year reported figure.
The bottom line of this general merchandise retailer is also anticipated to have improved year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share for the quarter under review has been stable at $2.38. This consensus figure suggests a 25.9% increase compared to the earnings reported in the same period last year.
Target has a trailing four-quarter earnings surprise of 30.8%, on average. In the last reported quarter, this Minneapolis, MN-based company’s bottom line outperformed the Zacks Consensus Estimate by 41.9%.
Key Things to Note
In a bid to fortify its market presence and elevate sales performance, Target has been proactive in adapting its business operations to remain competitive. The company's strategic initiatives, including digital advancements, store investments and targeted merchandise actions to capture market share, are anticipated to have contributed to its overall performance. The company might have seen strength in frequency businesses.
Target's management has been proactive in implementing cost-control measures, collaborating with vendors and driving operational efficiencies. We anticipate that Target is likely to have registered margin expansion, thanks to cleaner inventory levels resulting in a reduction in markdown frequency and magnitude. Additionally, lower supply chain and freight costs are likely to have further contributed to margin improvement. We anticipate a gross margin expansion of 170 basis points in the final quarter.
However, Target faces several challenges, including declining comparable sales, softness in discretionary spending, inflationary pressures and shifts in consumer behavior. We anticipate a 5% decline in comparable sales in the fourth quarter.
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. 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. However, that’s not the case here.
Target has a Zacks Rank #2 but an Earnings ESP of -0.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Costco (COST - Free Report) currently has an Earnings ESP of +1.58% and carries a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings per share is pegged at $3.60, up 9.1% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $59.2 billion, which indicates an increase of 7.1% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +1.12% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.16 suggests an increase of 38.1% from the year-ago reported number.
Ollie's Bargain’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $649.1 million, which suggests an increase of 18.1% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7%, on average.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.25 suggests a rise of 9.8% from the year-ago quarter.
Burlington Stores’ top line is anticipated to advance year over year. The consensus mark for revenues is pegged at $3.02 billion, indicating an increase of 9.9% from the figure reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 9.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.