Target’s Stock Takes a 20% Dive Following Revised Full-Year Forecast
Target Corporation shares took a 20% nosedive as the retail behemoth cut back its full-year earnings forecast and posted third-quarter results that fell significantly short of expectations.
The retailer has now adjusted its full-year earnings per share projection to between $8.30 and $8.90, a noticeable drop from its previous guidance of $9.00 to $9.70 per share. The third-quarter earnings were reported at $1.85 per share, a stark contrast to the analyst estimate of $2.30 per share. This represents the company’s most significant bottom-line miss in two years.
The underwhelming performance underscores the persistent challenges in the retail sector. Consumers continue to exercise caution with discretionary spending due to economic uncertainty. This is particularly striking when compared to the broader market’s positive momentum. On the same day, the Dow Jones Industrial Average rose by 0.32% to close at 43,408.47.
Source: CNBC