What You Need To Know Ahead of Target Earnings Wednesday

Group 1: Analyst Estimates - For Q2 2024, revenue is projected at $25.21 billion, an increase from $24.53 billion in Q1 2024 and $24.77 billion in Q2 2023 [1] - Diluted EPS for Q2 2024 is estimated at $2.14, up from $2.03 in Q1 2024 and $1.80 in Q2 2023 [1] - Net income for Q2 2024 is expected to reach $1.00 billion, compared to $942 million in Q1 2024 and $835 million in Q2 2023 [1] Group 2: Full-Year Outlook - Target's full-year adjusted EPS projections are below expectations, with analysts from JPMorgan anticipating a downward revision that could pressure shares [2] - JPMorgan analysts lowered their price target for Target from $165 to $153, citing potential harm to second-half margins due to increased promotions [2] - Baird analysts maintain a more positive outlook, asserting that Target has sufficient control over spending to affirm its full-year adjusted EPS projection of $8.60 to $9.60 [2] Group 3: Business Spotlight - Positive retail sales data from the U.S. Census Bureau and better-than-expected sales from Walmart created an encouraging backdrop for Target's earnings [3] - Despite both Walmart and Target beating earnings expectations in Q1, their stock performances diverged, with Walmart benefiting more from consumer spending trends [3] - Target shares increased by 4.4% to $141.67, remaining less than 1% below the start of the year [3]