Target's Earnings Target (TGT)

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On Tuesday morning we’ll get to see earnings out of Target Corp. (NYSE: TGT). The estimates for the food and merchandise discount store giant from First Call are $1.22 EPS on $20 billion in revenues.  Next quarter estimates are $0.74 EPS on $15.1 billion in revenues. Estimates for fiscal Jan-2009 are $3.64 EPS on $68.63 billion in revenues.

Analysts have an average price target north of $60.00. Target Corp.’s 52-week trading range is $47.01 to $70.75, at $53.25 on Monday Target is about 25% off its highs.  Target will be hard to compare to Wal-Mart, which is actually closer to its 52-week highs as a weak economy allows Wal-Mart to do better than Target and elsewhere.

We already saw "sub par guidance" be accepted at Nordstrom with its earnings, but Target is not in the same league of customers.  Since this is not off of highs as much, its harder to venture to say exactly how bad the news already priced in can be.

Jon C. Ogg
February 26, 2008