Target Higher After Beating EPS Estimates

Target TGT is trading slightly higher today after reporting a first-quarter EPS of $0.99 versus the $0.94 Street estimate. Revenues came in at $15.93B versus the $16.02B Street estimate. Same-store sales came in at +2.0%, slightly below expectations. Target reported net earnings of $689 million for the quarter ended April 30, 2011, compared with $671 million in the quarter ended May 1, 2010. Earnings per share in the first quarter increased 9.8 percent to $0.99 from $0.90 in the same period a year ago. All earnings per share figures refer to diluted earnings per share. “Our first quarter financial performance was the result of stronger-than-expected profitability in our Credit Card Segment, which offset the impact of weaker-than-anticipated sales in our Retail Segment,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “Our PFresh remodel program and 5% REDcard Rewards loyalty program continue to deliver incremental traffic and sales in an environment where our guests remain cautious in their spending. Throughout the organization we're focused on driving sales by providing value, quality and reliability to our guests and delivering on both halves of our Expect More. Pay Less. brand promise.”