Target shares plunge after lackluster sales ahead of holiday season
Published On Nov 20, 2024, 10:01 AM
Target Corp. shares fell sharply after the company reported a major earnings miss, with adjusted earnings per share for the third quarter at $1.85, significantly below Wall Street's expectation of $2.30. Target lowered its full-year profit guidance, projecting adjusted earnings per share between $8.30 and $8.90, down from the previous estimate of $9.00 to $9.70. CEO Brian Cornell cited unique challenges and cost pressures, leading to cautious sales expectations for the crucial holiday season, with predicted store sales being flat. This news resulted in a 19% decline in stock price, marking one of its worst trading days since May 2022.
Stock Forecasts
TGT
Negative
The substantial drop in Target's share price reflects investor concern over the company's weakened sales outlook and lowered earnings expectations, amidst a challenging retail environment. While the company remains confident in the long-term trajectory, the immediate response from the market signifies a lack of confidence in their ability to compete effectively during the holiday season. Investors may want to avoid taking new positions in Target until there are signs of sales recovery or stabilization in earnings forecasts.
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