Target Corp. (TGT) Misses Estimates
Discount retailer Target Corp. said Tuesday that third-quarter earnings dipped 4 percent, missing Wall Street forecasts, because of weak sales in high-margin categories such as clothing and home furnishings.
Target also said its board has authorized a new $10 billion share buyback program that at current prices would cover 20 percent of its outstanding shares. Target said the buyback would be funded partially by additional debt.
Target shares fell 90 cents, or 1.7 percent, to $53 in morning trading after trading at a 52-week low of $52 earlier in the session.
Third-quarter earnings fell to $483 million, or 56 cents per share, from $506 million, or 59 cents per share, in the prior year.
Quarterly sales grew 9 percent to $14.84 billion, from $13.57 billion in the third quarter of 2006.
Analysts surveyed by Thomson Financial forecast earnings of 62 cents per share on revenue of $14.83 billion. The earnings estimates typically exclude one-time items.
Target also said its board has authorized a new $10 billion share buyback program that at current prices would cover 20 percent of its outstanding shares. Target said the buyback would be funded partially by additional debt.
Target shares fell 90 cents, or 1.7 percent, to $53 in morning trading after trading at a 52-week low of $52 earlier in the session.
Third-quarter earnings fell to $483 million, or 56 cents per share, from $506 million, or 59 cents per share, in the prior year.
Quarterly sales grew 9 percent to $14.84 billion, from $13.57 billion in the third quarter of 2006.
Analysts surveyed by Thomson Financial forecast earnings of 62 cents per share on revenue of $14.83 billion. The earnings estimates typically exclude one-time items.
Labels: Target Corp., TGT
posted by Stock Administrator @ 2:39 PM
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