Target Stock Jumped After Q2 Earnings Report

Target Stock Jumped after beating the estimated Revenue by 1% and EPS by 17.72%. So in this article, we will discuss highlights of the Q2 Earnings Report.

Target Corporation Stock(TGT) Jumped after the Q2 Earnings Report because the estimated Revenue was $25.21B but it reported $25.45B and the estimated Earnings Per Share was $2.18 but it reported $2.57. CEO Brian Cornell said that the key strategy for the traffic was the target-being-target, focused on delivering value and reduced prices over 5000 frequently purchased items.

Highlights of Q2 2024

• Sales: Sales increased by 2.0%, at the high end of the Company’s expectations.
• Traffic: Traffic grew 3% in the second quarter as compared to the prior year, with all six core merchandising categories delivering traffic growth.
• Digital Sales: Digital comparable sales grew 8.7%. Same-day services saw double-digit growth, led by low teen growth in Drive Up and Target Circle 360™ same-day delivery.
• Discretionary sales: Discretionary sales trends continued to improve meaningfully, with comparable Apparel sales(standout performer) growing by more than 3% in the quarter.
• Operating income margin rate: The second quarter operating income margin rate of 6.4% grew 160 basis points compared to the prior year, driven by a higher gross margin rate.
• GAAP and Adjusted EPS: GAAP and Adjusted EPS of $2.57 grew by more than 40% compared with last year.

Consolidated Statements Highlights

• Operations: The sales increased from $24.4B to $25.02B, the revenue increased from $24.8B to $25.5B, the operating income increased from $1.2B to $1.6B, the net earnings increased from $835M to $1.2B, EPS increased from $1.81 to $2.58, and dividends increased from $1.10 to $1.12.
• Financial Position: Cash and cash equivalents decreased from $3.8B to $3.5B, the total current assets increased from $17.5B to $17.9B, and the total assets increased from $55.4B to $60B.
• Cash Flows: Cash provided by operating activities decreased from $3.4B to $3B, and the Cash and cash equivalents at the end of the period increased from $1.6B to $3.5B.
• Operating Results: Operating income margin rate increased from 4.8% to 6.4%.
• Sales Channel: Store sales increased by 0.7% and digital sales increased by 8.7%
• EBIT and EBITDA: EBIT increased from $1.2B to $1.7B, and the EBITDA increased from $1.9B to $2.4B.
• After-Tax Return on Invested Capital: Operating income increased from $4.7B to $6.1B, the net operating profit after taxes increased from $3.9B to $4.9B, and the after-tax return on invested capital increased from 13.7% to 16.6%.
  

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