BBIG - Target (TGT) Stock Sinks on Major Profit Miss Outlook Cut
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Target (NYSE:TGT) stock isn’t doing so hot on Wednesday after the retail company revealed poor earning results for the third quarter of 2022.
The bad news for TGT stock starts with the company’s adjusted earnings per share of $1.54. That’s a massive miss compared to Wall Street’s estimate of $2.13 per share for the period. It’s also a 49.1% decrease from the $3.03 per share reported in the same quarter of 2021.
Another blow to Target comes from its revenue of $26.12 billion. Yet again, that comes in below the $26.38 billion in revenue that analysts were looking for. However, it does represent a 3.3% increase from the $25.29 billion reported in the third quarter of the prior year.
Holiday Sales Won’t Save TGT Stock
Brian Cornell, chairman and CEO of Target, said the following in the earnings report.
“While we’re ready to deliver exceptional value for our guests this holiday season, supported by the decisive inventory actions we took earlier this year, the rapidly evolving consumer environment means we’re planning the balance of the year more conservatively.”
To go along with that, Target provided an update on its Q4 2022 guidance. The company says it expects to see a low-single-digit decline in comparable sales as well as an operating margin rate of around 3%.
Today’s poor earnings news brings heavy trading to TGT stock with some 11 million shares on the move. For the record, its daily average trading volume is closer to 3.8 million shares.
TGT stock is down 15% as of Wednesday morning.
Investors can check out more of the latest stock market news below!
InvestorPlace has all of that news ready to go in one place! That includes what has shares of Vinco Ventures (NASDAQ:BBIG) and Phunware (NASDAQ:PHUN) moving, as well as the biggest pre-market stock movers from this morning. You can catch up on all of that at the following links!
More Wednesday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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