Target Corp.’s stock TGT rose 11% in premarket trade Wednesday, after the retailer beat profit estimates for the second quarter by a wide margin. offsetting for now a sales miss and lowered guidance. The company had net income of $835 million, or $1.80 a share, up from $183 million, or 39 cents a share, in the year-earlier period. Adjusted per-share earnings also came to $1.80, well ahead of the $1.43 FactSet consensus. Revenue fell 5T to $24.773 billion from $26.037 billion a year ago, below the $25.178 billion FactSet consensus. Same-store sales fell 5.4%, while FactSet was expecting a decline of 3.7%. The company said the profit rise reflected “a meaningful” recovery from last year’s inventory actions. But it lowered its full-year sales guidance to reflect recent trends and said it now expects them to be down in the mid-single digits for the rest of the year. It expects adjusted EPS of $7.00 to $8.00, compared with prior guidance of $7.75 to $8.75. The FactSet consensus is for EPS of $7.72. The stock has fallen 16% in the year to date, while the S&P 500 SPX has gained 16%.
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