Target Q2 Result Tops Estimates, Margin Shrinks; Plans $15B Stock Buyback

Target Corp TGT reported second-quarter FY21 revenue growth of 9.5% year-on-year, to $25.16 billion, beating the analyst consensus of $25.08 billion.
Comparable store sales grew 8.9%, driven by traffic. Digital comparable sales grew 10%.
The operating margin contracted 20 basis points to 9.8%, and operating income for the quarter rose 7.2% to $2.5 billion.
Gross margin contracted 50 basis points to 30.4%, reflecting pressure from higher merchandise and freight costs.
The company held $7.4 billion in cash and equivalents as of July 31, 2021.
EBITDA of $3.1 billion increased 6.6% Y/Y.
Adjusted EPS of $3.64 beat the analyst consensus of $3.49.
Cash provided by operating activities for the six months totaled $3.4 billion.
Target's Board approved a new $15 billion share repurchase program.
Outlook: Target sees high single-digit growth in comparable sales, near the high end of the prior range, for the second half of 2021.
Price Action: TGT shares are trading lower by 2.12% at $249.25 in premarket on the last check Wednesday.

Momentum13.54

Growth26.09

Quality64.19

Value79.41

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