Target Corporation ($TGT) Earnings (Q4 FY21)

 Target Corporation ($TGT) Earnings and Opinion:


Target Corporation is a retail store that sells a variety of products both in-store and online. It is currently based out of Minneapolis, Minnesota. The company has been around for over 100 years and currently has close to 2,000 operating stores. Target reported both Full year 2021 as well as Q4 2021 earnings this morning. Let's take a look at the earnings and get my take on where I think the company stands.


Target Corporation EPS and Revenue Q4:

  • EPS of $3.19 compared to estimates of $2.86
  • Revenue of $31B compared to estimates of $31.52B
  • EPS were up 19.2% (YOY) and Revenue was up 9.4% (YOY)
Target Corporation EPS and Revenue FY21:
  • EPS of $13.56
  • Revenue of $106B
  • EPS was up 44% (YOY) and Revenues were up 13.3% (YOY)
Target Capital Deployment and Return on Invested Capital:
  • Total Dividends distributed was $432 million up 32.4% (YOY)
  • Bought back $2.3B worth of stock in Q4 FY21
  • Plans to open 30 new stores, remodel 200, and add 5 new sorting centers

Opinion:
Target Corporation ($TGT) beat EPS estimates but missed Revenue estimates for Q4 FY21. This didn't stop the stock from soaring higher in todays trading session. Revenues reached an all time high (FY21) and were up 13.3% for the fiscal year. They also reported EPS of $13.56 (FY21) which were up 44% compared to last fiscal year. Target seems to be growing at an excellent rate and have seem to gain a stronghold on their online sales. Although the majority of the sales still come from in-store purchases, I am happy to see the online sales continue to be strong. One thing that stood out to me was the $432 million they distributed in dividends over the past year. This is excellent news for current shareholders who are using this holding as a way to gain income. I currently do not hold a position in Target Corporation, however I have been watching this company in my "Strong Dividend Plays" watchlist. This is another really good consumer staple stock that I don't see going away anytime soon. I love that they continue to expand their operation by adding new stores, as well as remodel older stores to ensure a quality customer experience. These are things you like to see out of quality companies that continue to give back to shareholders, while also reinvesting back into its operation. If they can keep putting up numbers like this past fiscal year, I would strongly suggest starting a position in Target.



*Information attained from Yahoo Finance, Nasdaq, Target, and Benzinga
*Estimates attained from Zacks



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