TGT: Clean Beat. Quick Read...

05/20/09 08:49AM EDT

Quick look here.  Looks like a clean $0.09 beat, coming in at $0.69 vs. Street at $0.60.  Remember TGT raised expectations with April sales from $0.52.   Core retail performance key here, with gross margins flat (despite sizeable mix shift from consumables) and slight sg&a leverage on a negative 3.7% comp.  It may have taken TGT a bit longer to exhibit controls and discipline vs. WMT and others but the results are bearing fruit here.  Overall EBIT % was flat y/y in core retail. 

Credit looked to be in line with expectations, but a huge drag y/y and the key reason why EPS are still down y/y.  Things don't appear to be getting worse which is key. 

Call at 10:30 here.  This is a big beat for a big company.  Makes me wonder (again) why the board needs to be shaken up...

Eric Levine

Research Edge

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.