Target Shares Surge 16% After Strong Q2 Earnings Beat and Raised Full-Year Profit Outlook

Target Corporation (NYSE:TGT) saw its stock surge by 16% intra-day today after the retail giant delivered strong second-quarter results, exceeding both earnings and revenue expectations. The company also raised its full-year profit outlook.

In the second quarter, Target reported earnings per share (EPS) of $2.57, surpassing Wall Street's projection of $2.19. Revenue for the quarter reached $25.45 billion, slightly ahead of the anticipated $25.2 billion.

The retailer's comparable sales rose by 2%, bolstered by a 3% rise in customer traffic. Online sales were particularly strong, with digital comparable sales increasing by 8.7%, and same-day services showing double-digit growth.

Target's CEO, Brian Cornell, highlighted the company's return to growth in the second quarter, noting that this achievement came alongside improved operating margins and a 40% year-over-year increase in EPS.

Looking ahead, Target adjusted its full-year earnings guidance, now forecasting adjusted EPS between $9.00 and $9.70, an increase from the earlier range of $8.60 to $9.60. However, the company expects its annual comparable sales growth to fall in the lower half of its initial projection of 0% to 2%.

For the upcoming third quarter, Target projects comparable sales growth between 0% and 2%, with adjusted EPS expected to range from $2.10 to $2.40.