Sorry, But Target's Q2 Results Weren't Quite As Great As the Stock's Surge Suggests

Kudos to (NYSE: TGT), and congratulations to its shareholders. The retailer's stock soared more than 10% on Wednesday in response to its second-quarter numbers, which were better than expected. It also upped its full-year profit guidance, further fanning the bullish flames.

However, there are a couple of footnotes regarding the company's Q2 results that just might make you rethink the notion that Target is completely back on track. Indeed, you might want to wait at least until the current quarter's numbers are in hand before making a decision about owning this stock.

For the three-month stretch ending in early August, retailer Target turned $25.45 billion worth of revenue into a per-share profit of $2.57. Sales improved 2.7% year over year, driving a 42% increase in earnings that were depressed by tough economic conditions in the comparable quarter of 2023. Last quarter's results also topped estimates for sales of nearly $25.2 billion and a profit of $2.18 per share. Same-store sales were up 2%, snapping a four-quarter streak of declines in comparable sales.

Continue reading

Source Fool.com