Target, Inc. (NYSE: TGT)
Shares of Target rallied on heavy volume yesterday after the company reported better than expected comparable store and online revenues for both the fourth quarter and full fiscal year 2015, and raised earnings guidance for fiscal 2106.
Target’s fourth quarter revenue came in slightly below consensus estimate at $21.6 billion while earnings were in-line with guidance at $1.52 per share. For the full fiscal year, revenue rose 1.6% year over year to $73.8 billion. Non-GAAP adjusted earnings for the year came in at $4.69 per share, an 11% increase over fiscal 2104 earnings. Highlights of the report included full year comparable store sales, which grew 2.1%, and fourth quarter online sales that climbed 34%. The company also raised 2016 earnings guidance to $5.20 – $5.40 per share versus prior forecast of $5.16 per share. Yahoo Finance
“With traffic growing for five consecutive quarters and our signature categories of Style, Baby, Kids, and Wellness leading our growth, Target’s results demonstrate that we are focused on the right strategic priorities,” said Brian Cornell, chairman and CEO of Target. “I want to thank our teams across the company for giving our guests a great holiday season, driving consistent growth throughout the fourth quarter and delivering on the sales and profit goals we laid out at the beginning of the year. While we have made a great deal of progress in 2015, we are excited about the opportunity in front of us to provide a more seamless experience and accelerate profitable growth.” Business Wire
TGT Technical Analysis
Target gapped up on the earnings report but was choppy in early trading as it dealt with the broader market selloff. When stocks did finally reverse heavy morning selling and rallied sharply higher, TGT climbed 4% and closed near its high of the day at $76.94, just pennies away from the 200-day moving average. If the markets are in fact putting in a bottom, TGT is poised to offer some bullish intra-day trades and possibly make a run at all-time highs. On the other hand if skittish markets beget more weakness 12-month lows are possible. This market forces us to be prepared for both bullish and bearish trades. I watch price action and levels from the end of the prior day, the pre-market and the opening to gauge how my trade plans might play out. If TGT has a volume move thru yesterday’s high of $77 it could have room to $77.91, $78.50 and $79.00. If markets show weakness TGT could find support near any of the whole and half-dollar levels from $76.50 through $74.00.
Target Company Profile
Target Corporation is engaged in providing everyday essentials and fashionable, and differentiated merchandise at discounted prices. The Company offers its products through stores, online or through mobile devices. The Company sells an assortment of general merchandise and food through its store and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its urban format stores, CityTarget and TargetExpress, offer edited general merchandise and food assortments. Its digital channels include an assortment of general merchandise, including various items found in its stores, along with a complementary assortment, such as additional sizes and colors sold online. The Company’s brands include Archer Farms, Simply Balanced, Boots & Barkley, Circo, Embark, Gilligan & O’Malley, Market Pantry, Merona, Room Essentials, Smith & Hawken, Spritz and Sutton & Dodge. Google Finance