Insights into Target's Upcoming Earnings

Target (NYSE:TGT) will release its quarterly earnings report on Wednesday, 2025-05-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Target to report an earnings per share (EPS) of $2.25.

The announcement from Target is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.15, leading to a 0.5% drop in the share price the following trading session.

Here's a look at Target's past performance and the resulting price change:

Quarter	Q4 2024	Q3 2024	Q2 2024	Q1 2024
EPS Estimate	2.26	2.30	2.19	2.05
EPS Actual	2.41	1.85	2.57	2.03
Price Change %	-0.0%	-0.0%	-2.0%	1.0%

Stock Performance

Shares of Target were trading at $97.99 as of May 19. Over the last 52-week period, shares are down 31.57%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Target

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Target.

The consensus rating for Target is Neutral, based on 28 analyst ratings. With an average one-year price target of $122.46, there's a potential 24.97% upside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Dollar General and BJ's Wholesale Club Hldgs, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Dollar General, with an average 1-year price target of $88.75, suggesting a potential 9.43% downside.
• Analysts currently favor an Neutral trajectory for BJ's Wholesale Club Hldgs, with an average 1-year price target of $118.79, suggesting a potential 21.23% upside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Dollar General and BJ's Wholesale Club Hldgs are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Target	Neutral	-3.15%	$8.04B	7.57%
Dollar General	Neutral	4.52%	$3.03B	2.59%
BJ's Wholesale Club Hldgs	Neutral	-1.47%	$948.98M	6.80%

Key Takeaway:

Target is positioned in the middle among its peers for Consensus rating. It ranks at the top for Revenue Growth, indicating a positive trend. In terms of Gross Profit, Target is at the top, reflecting strong financial performance. For Return on Equity, Target is also at the top, showcasing efficient use of shareholder equity.

Delving into Target's Background

Target serves as the nation's seventh-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target's upscale and stylish image began to carry national merit in the 1990s—a decade in which the brand saw its top line grow threefold to almost $30 billion—and has since cemented itself as a leading US retailer.Today, Target operates over 1,900 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm's vast footprint is typically concentrated in urban and suburban markets as the firm seeks to attract a more affluent consumer base.

Understanding the Numbers: Target's Finances

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Target's financials over 3 months reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -3.15% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 3.57%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Target's ROE stands out, surpassing industry averages. With an impressive ROE of 7.57%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Target's ROA stands out, surpassing industry averages. With an impressive ROA of 1.9%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 1.36, Target faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Target visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.