Target Tumbles On Earnings Miss, Guidance; TJX Tops EPS Views

Target Tumbles On Earnings Miss, Guidance; TJX Tops EPS Views

Target’s stock fell early Wednesday after the retailer missed its first-quarter earnings forecast and trended lower. In the meantime, TJX (TJX) climbed on its report Wednesday morning.




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Retail friends Big BJ club (BJ) And Ross Stores (PINK) are also on deck.

Target (TGT) reported a 1% drop in profit to $2.03 per share, while revenue fell 3.1% to $24.53 billion.

FactSet analysts expected earnings to rise 1 cent year over year to $2.06 per share. Revenue is expected to decline to $24.52 billion.

Comparable sales declined 3.7% in the first quarter, in line with Target’s estimates from its during his fourth quarter.

The retailer expects adjusted earnings of $1.95 to $2.35 per share in the second quarter, up from $1.80 per share last year, with earnings flat, up 2 percent. But Wall Street forecast a target profit of $2.20 per share.

The discount giant expects full-year adjusted earnings of between $8.60 and $9.60 per share. But the midpoint of $9.10 is well below FactSet’s forecast of a 6.2% increase to $9.49 per share.

Target announced on Monday that it was lowering prices for approximately 5,000 everyday items, ranging from milk, snacks and produce to diapers, paper towels and pet food. Some 1,500 reductions have already been made, with more planned over the summer. Target said it regularly adjusts its prices to stay competitive.

“We know consumers feel compelled to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and director of food, essentials and of beauty, in the results press release.

Target stock

Target’s stock plunged 8.4% premarket Wednesday, on track for four straight days of declines if the early move holds.

TGT stock fell to eight-week low on Tuesday flat base with a 181.86 point of purchase. The base is approximately 14% deep, Market increase the graphs show. A decline of more than 15% – or below 154.58 – would mean that it is no longer a flat base but a general consolidation.

Target’s stock was up 9.4% year to date through Wednesday’s close.

TJX Profits

TJX reported a 22% profit increase to 93 cents per share, beating FactSet’s forecast of 88 cents per share and marking seven consecutive quarters of growth. Net sales increased for the sixth consecutive quarter and met forecasts with a 6% increase to $12.48 billion.

TJX announced that its consolidated comparable sales for the first quarter of 2025 increased 3%, driven by a 4% increase at HomeGoods stores in the United States and TJX stores in Canada.

The company has guided its comparable sales to grow between 2% and 3% for the second quarter and fiscal 2025. TJX expects second-quarter earnings per share of between 88 cents and 90 cents, which was lower than analysts’ forecasts of 94 cents. The full-year earnings range of $4.03 to $4.09 per share also fell short of expectations for a 6.5% increase to $4.11 per share.

TJX stock rose 1.3% early Wednesday.

Shares are trading below a 13-week buy point of 102.04, double bottom base. TJX fell below its 10-day moving average this week and is trading just above its 50 day line.

TJX stock is up 4.2% so far this year.


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Other retail income

Elsewhere, member warehouse chain BJ’s Wholesale reports results early Thursday, followed by off-price clothing retailer Ross Stores after the market closes.

Analysts expect BJ’s earnings to fall 2.4% to 83 cents per share, on revenue growth of 2.8% to $4.86 billion.

BJ stock is trading in a shopping area for a major consolidation dating back almost a year. Shares rose above the 78.88 buy point in early March.

Wall Street expects Ross’s earnings to rise 23.9% to $1.35 per share, slowing after three quarters of accelerating growth. Sales are expected to increase 7.4% to $4.83 billion.

Ross Stores is trading just above the 200-day line, down since early March.

Costco wholesale (COST) will be available next week and its results will be published on May 30. COST stock is trading within the range of a 787.08 cup basis buy point.

Retail results have managed to beat moderate expectations so far this quarter. Walmart (WMT) posted a gap last week after beating estimates with an increase in revenue of 22%. Walmart noted that it continues to attract newer and more frequent shoppers amid price inflation, while also attracting higher-income earners. The Dow Jones giant also said it expects full-year earnings and revenue to be at the high end of or slightly above its prior forecasts.

Lowes (WEAK) reported a 17% drop in first-quarter profits on Tuesday but still managed to exceed analysts’ forecasts. Rival Home deposit (HD) reported better-than-expected earnings last week, even though the company’s EPS fell 5%. Lowe’s and Home Depot maintained their full-year outlooks. Somewhere else, Macy’s (Mr.) beat earnings forecasts on Tuesday and raised its outlook, despite a nearly 52% decline in EPS. The former department store said it was in the “early innings” of turning around its performance.

However, shares of Home Depot and Lowe’s fell on the results, while those of Macy’s rose slightly, although they remain below their 50-day line.

You can follow Harrison Miller for more stock news and updates on X/Twitter. @IBD_Harrison

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