Will Target's $7 Billion Bet Pay Dividends?

Target Corporation's (NYSE: TGT) third-quarter earnings report was better than anticipated. The retail giant reported both a top- and bottom-line beat by producing revenue of $16.67 billion and adjusted earnings per share (EPS) of $0.91, versus Thomson Reuters' analyst expectations of $16.61 billion and $0.86, respectively. Perhaps more importantly, the company reported a same-store sales advance of 0.9%, versus estimates of a 0.4% increase.

Instead of seeing rallying shares, Target stock fell approximately 10% in the trading session following the report. Cautious guidance for the critical fourth quarter made investors nervous. As of this writing, shares of Target are down 24%, while the greater S&P 500 is up 16%.

Target has outlined a plan to reverse its slide, but will its plan pay off?

Source: Fool.com