Target shares close higher on Wednesday, quarterly sales, earnings exceed expectations

May 18, 2017 9:33 am

Target Corporation’s (TGT) first-quarter sales and earnings, reported on May 17th, exceeded market expectations, while the retailer said full-year profit could be at the higher end of its latest projection.

Target shares closed higher for the first time in the past five trading sessions on Wednesday. The stock went up 0.94% ($0.51) to $55.04, after touching an intraday high at $56.97, or a price level not seen since May 11th ($57.87). In the week ended on May 14th the shares of the general merchandise retailer lost 2.65% of their market value compared to a week ago, which marked the first drop in the past five weeks. However, the stock has pared its slump to 1.45% so far during the current month, following a 1.20% surge in April. The latter has been the first monthly gain since November 2016. For the entire past year, Target Corporation’s shares lost 0.52%.

Sales at stores, which are open for at least 1 year, were reported to have shrunk 1.3% during the latest quarter. In comparison, the median analyst estimate had pointed to a 3.6% drop during the same period, research firm Consensus Metrix said.

At the same time, Target’s on-line sales increased 22% during the first quarter. Over 27% of these orders are usually shipped from the company’s stores.

Total revenue shrank 1.1% to $16.02 billion during the latest three-month period. However, analysts on average had projected a sharper revenue decline, to $15.62 billion, according to Thomson Reuters I/B/E/S.

Target’s earnings per share were reported at $1.21 during the first quarter, which also outstripped the median analyst estimate ($0.91 per share).

Sound demand for swim wear and electronic items, such as the Nintendo Switch gaming console, coupled with higher activity at Target’s smaller-format stores facilitated the better-than-anticipated first-quarter performance.

As a result, according to the retailer, there is a higher probability that full-year earnings may be above the midpoint of Target’s latest forecast. The firm projected its adjusted earnings per share would be within the range between $3.80 and $4.20.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Target Corporation’s stock price, have a median target of $57.93, with a high estimate of $77.00 and a low estimate of $49.00. The median estimate is a 5.26% surge compared to the closing price of $55.04 on May 17th.

The same media also reported that 19 out of 28 surveyed investment analysts had rated Target Corporation’s stock as “Hold”, while 4 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Target stock are presented as follows:

R1 – $55.22
R2 – $55.39
R3 (Range Resistance – Sell) – $55.57
R4 (Long Breakout) – $56.10
R5 (Breakout Target 1) – $56.72
R6 (Breakout Target 2) – $56.97

S1 – $54.86
S2 – $54.69
S3 (Range Support – Buy) – $54.51
S4 (Short Breakout) – $53.98
S5 (Breakout Target 1) – $53.36
S6 (Breakout Target 2) – $53.11

By using the traditional method of calculation, the weekly levels of importance for Target Corporation (TGT) are presented as follows:

Central Pivot Point – $56.48
R1 – $57.97
R2 – $60.13
R3 – $61.62
R4 – $63.10

S1 – $54.32
S2 – $52.83
S3 – $50.67
S4 – $48.50

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