Target Struggles: Shares Plummet Following Earnings Misses and Weak Guidance
Target Corporation (NYSE:TGT) reported disappointing results for Q3 2024, falling short of Wall Street expectations. The company revealed EPS of $1.05 on revenue of $25.3 billion, below analyst forecasts of $1.20 EPS and $25.5 billion in revenue. Management attributed the lackluster performance to subdued consumer spending and rising operational costs.
The outlook for Q4 is concerning, predicting a 2%-4% decline in revenue contrary to analysts’ projections of modest growth. Ongoing challenges include weak demand in discretionary categories and persistent inflationary pressures.
Shares of Target fell over 9% during after-hours trading, reflecting significant investor disappointment regarding both the results and the cautionary outlook.
To navigate through this challenging landscape, investors must keep an eye on broader retail trends and changes in consumer behavior.