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Earnings Review and Free Research Report: Target’s Diluted EPS Increased 14.2%

Research Desk Line-up: Ollie's Bargain Outlet Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Target Corp. (NYSE: TGT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TGT, following the Company's disclosure of its financial results on August 16, 2017, for the second quarter of the fiscal year 2017. The Company's revenue increased 1.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Discount, Variety Stores industry. Pro-TD has currently selected Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) for due-diligence and potential coverage as the Company announced on August 29, 2017, its financial results for Q2 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Ollie's Bargain Outlet when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TGT; also brushing on OLLI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=TGT

http://protraderdaily.com/optin/?symbol=OLLI

Earnings Reviewed

For the three months ended July 29, 2017, Target's revenue increased 1.6% to $16.43 billion from $16.17 billion in Q2 FY16. During Q2 FY17, the Company's comparable sales growth was positive 1.3% versus negative 1.1% in Q2 FY16. The revenue surpassed analysts' expectations of $16.29 billion.

During Q2 FY17, the Company's stores sales was 95.7% of total sales compared to 96.7% of total sales in Q2 FY16. For the reported quarter, Target's digital sales were 4.3% of total sales compared to 3.3% of total sales in Q2 FY16.

For the reported quarter, the Company's gross profit increased 0.3% to $5.01 billion from $5.00 billion in Q2 FY16. For the reported quarter, the Company's gross margin decreased 40 basis points to 30.5% of revenue from 30.9% of revenue in Q2 FY16. The decrease was due to increased fulfillment cost and the impact of efforts to improve pricing and promotions.

During Q2 FY17, Target's selling, general, and administrative expenses (SG&A) increased 4.1% to $3.38 billion from $3.25 billion in Q2 FY16. For the reported quarter, the Company's D&A expenses increased 2.8% to $514 million from $500 million in Q2 FY16.

During Q2 FY17, Target's earnings before interest and taxes (EBIT) decreased 10.8% to $1.11 billion from $1.25 billion in Q2 FY16. For the reported quarter, the Company's EBIT margin decreased 90 basis points to 6.8% of revenue from 7.7% of revenue in Q2 FY16.

For the reported quarter, the Company's effective tax rate was 31.4% compared to 33.6% in Q2 FY16.

During Q2 FY17, Target's net income increased 7.4% to $671 million on a y-o-y basis from $625 million in Q2 FY16. For the reported quarter, the Company's diluted earnings per share (EPS) increased 14.2% to $1.22 on a y-o-y basis from $1.07 in Q2 FY16. During Q2 FY17, Target's adjusted diluted EPS remained flat compared to $1.23 in Q2 FY16. The adjusted diluted EPS was in-line with analysts' expectations.

On August 23, 2017, Target appointed Mr. Minsok Pak as its new Chief Strategy and Innovation Officer effective from September 11, 2017.

During Q2 FY17, the Company repurchased 5.6 million shares of common stock at an average price of $52.45 for a total of $296 million.

Balance Sheet

As on July 29, 2017, Target's cash and cash equivalents increased 54.7% to $2.29 billion from $1.48 billion in Q2 FY16.

During Q2 FY17, the Company's inventory decreased 4.3% to $8.26 billion from $8.63 billion in Q2 FY16.

For the reported quarter, Target's accounts payable increased 11.3% to $7.58 billion from $6.81 billion in Q2 FY16.

During Q2 FY17, the Company's long-term debt decreased 9.7% to $10.89 billion from $12.06 billion in Q2 FY16.

For the reported quarter, the Company's return on invested capital was 13.8% compared to 15.8% in Q2 FY16.

During H1 FY17, the Company's cash provided by operating activities increased 96% to $2.92 billion from $1.49 billion in H1 FY16.

Outlook

For Q3 FY17, Target expects both diluted EPS and adjusted diluted EPS to be in the range of $0.75 - $0.95.

The Company estimates diluted EPS to be in the band of $4.35 - $4.55 and adjusted diluted EPS to be in the range of $4.34 - $4.54 for the fiscal year 2017.

Stock Performance

Target's share price finished yesterday's trading session at $57.35, advancing 2.01%. A total volume of 7.53 million shares have exchanged hands. The Company's stock price advanced 5.08% in the last three months and 4.01% in the past six months. Shares of the Company have a PE ratio of 11.59 and have a dividend yield of 4.32%. The stock currently has a market cap of $31.50 billion.

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SOURCE: Pro-Trader Daily