Tags: Target | Profit | Credit | Card

Target Profit Tops Analysts’ Estimates as Credit Card Unit Gains

Wednesday, 16 Nov 2011 08:46 AM

 Target Corp., the second-largest U.S. discount retailer, posted third-quarter profit that topped analysts’ estimates as it reduced costs and its credit card unit became more lucrative.

Net income increased 3.7 percent to $555 million, or 82 cents a share, from $535 million, or 74 cents, a year earlier, the Minneapolis-based company said today in a statement. Excluding some items, profit was 87 cents a share. Analysts projected 74 cents, the average of 20 estimates compiled by Bloomberg.

Chief Executive Officer Gregg Steinhafel has boosted sales this year by adding fresh grocery sections to stores and offering shoppers 5 percent off purchases made with company- issued credit and debit cards. The initiatives accounted for most of the 4.3 percent gain in sales at Target’s existing locations in the quarter, the biggest increase since 2007.

“We continue to believe sales will build through the remainder of the year and over the course of 2013,” Robert Summers, an analyst for Susquehanna Financial Group, wrote yesterday in a note to clients. He reiterated a “positive” rating on Target. “The stock affords an excellent entry point for more patient investors.”

Fourth-quarter profit per share on the basis of generally accepted accounting principles will be $1.43 to $1.53. The average estimate of analysts in a Bloomberg survey was $1.46.

Target rose 2.5 percent to $54.50 at 7:34 a.m. in New York. The shares declined 12 percent this year through yesterday.


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Target Corp., the second-largest U.S. discount retailer, posted third-quarter profit that topped analysts estimates as it reduced costs and its credit card unit became more lucrative.Net income increased 3.7 percent to $555 million, or 82 cents a share, from $535 million,...
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Wednesday, 16 Nov 2011 08:46 AM
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