Target TGT is set to give its latest quarterly earnings report on Wednesday, 2025-08-20. Here's what investors need to know before the announcement.
Analysts estimate that Target will report an earnings per share (EPS) of $2.04.
Investors in Target are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
Last quarter the company missed EPS by $0.35, which was followed by a 2.2% increase in the share price the next day.
Here's a look at Target's past performance and the resulting price change:
Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
---|---|---|---|---|
EPS Estimate | 1.65 | 2.26 | 2.30 | 2.19 |
EPS Actual | 1.30 | 2.41 | 1.85 | 2.57 |
Price Change % | 2.0% | -0.0% | -0.0% | -2.0% |
Performance of Target Shares
Shares of Target were trading at $104.95 as of August 18. Over the last 52-week period, shares are down 32.74%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Opinions on Target
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Target.
Analysts have given Target a total of 19 ratings, with the consensus rating being Neutral. The average one-year price target is $102.68, indicating a potential 2.16% downside.
Comparing Ratings with Peers
The analysis below examines the analyst ratings and average 1-year price targets of Dollar General, Dollar Tree and BJ's Wholesale Club Hldgs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Dollar General, with an average 1-year price target of $116.65, suggesting a potential 11.15% upside.
- Analysts currently favor an Neutral trajectory for Dollar Tree, with an average 1-year price target of $105.9, suggesting a potential 0.91% upside.
- Analysts currently favor an Neutral trajectory for BJ's Wholesale Club Hldgs, with an average 1-year price target of $116.3, suggesting a potential 10.81% upside.
Summary of Peers Analysis
The peer analysis summary presents essential metrics for Dollar General, Dollar Tree and BJ's Wholesale Club Hldgs, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
---|---|---|---|---|
Target | Neutral | -2.79% | $6.72B | 7.00% |
Dollar General | Neutral | 5.26% | $3.23B | 5.19% |
Dollar Tree | Neutral | 11.29% | $1.65B | 8.71% |
BJ's Wholesale Club Hldgs | Neutral | 4.78% | $969.50M | 7.84% |
Key Takeaway:
Target is positioned in the middle among its peers for revenue growth. It ranks at the top for gross profit and return on equity.
Unveiling the Story Behind Target
Target serves as the nation's seventh-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target's upscale and stylish image began to carry national merit in the 1990s—a decade in which the brand saw its top line grow threefold to almost $30 billion—and has since cemented itself as a leading US retailer.Today, Target operates over 1,900 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm's vast footprint is concentrated in urban and suburban markets as the firm seeks to appeal to a more affluent consumer base.
Breaking Down Target's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Negative Revenue Trend: Examining Target's financials over 3 months reveals challenges. As of 30 April, 2025, the company experienced a decline of approximately -2.79% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.
Net Margin: Target's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.34%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Target's ROE excels beyond industry benchmarks, reaching 7.0%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Target's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.82%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Target's debt-to-equity ratio surpasses industry norms, standing at 1.27. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Target visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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