Target (TGT) Tops Q4 EPS by 33c, Comps Increase 8.9%

Target (NYSE: TGT) reported Q4 EPS of $3.19, $0.33 better than the analyst estimate of $2.86. Revenue for the quarter came in at $31 billion versus the consensus estimate of $31.41 billion.

• Comparable sales grew 8.9 percent, on top of 20.5 percent in Q4 2020.

Fiscal 2022 Guidance and Quarterly Commentary:

For fiscal year 2022, the Company expects low- to mid-single digit revenue growth, an operating margin rate of 8 percent or higher, low-single digit growth in operating margin dollars, and high-single digit growth in Adjusted Earnings per Share.

The Company expects quarterly, year-over-year profit performance will be variable during the year, and generally improve as the year progresses. The company expects its first quarter 2022 operating margin rate will be favorable in relation to historical performance, but well below its first quarter 2021 rate of 9.8 percent.

Long-Term Financial Algorithm

Target has also updated its long-term financial algorithm, which will define the Company's expectations for annual performance in fiscal years 2023 and beyond. The algorithm specifies annual benchmarks for the following metrics:

• Mid-single digit growth in Total Revenue;
• Mid-single digit growth in Operating Income;
• High-single digit growth in Adjusted EPS;
• CAPEX of $4 to $5 billion; and
• After-tax Return on Invested Capital in the high-20% to 30% range.

For earnings history and earnings-related data on Target (TGT) click here.

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