NEW YORK — Target Corp. on Monday reported a 12.1 percent jump in first-quarter income, but earnings per share were 1 cent shy of Wall Street estimates, which led to a stock sell-off of the discounter in early morning trading.
Income for the three months ended April 29 were $554 million, or 63 cents a diluted share, from $494 million, or 55 cents, in the same-year ago quarter. Analysts on average had expected earnings of 64 cents a diluted share. Total revenues rose 12.1 percent to $12.86 billion from $11.48 billion, which included an 11.8 percent gain in sales to $12.49 billion from $11.17 billion. The balance of Target’s income came from its credit card business. Same-store sales in the period rose 5.1 percent.
Investors were disappointed in the earnings report, sending shares of Target down by 5-1/2 percent, or $2.87, in mid-morning trading to $49.34.
For complete coverage, see tomorrow’s WWD.