Target: Stock Rises as Discounts, Food Draw Customers In

[Stocks-to-Watch]

Target (TGT) shares rose 1.2% in morning trading after the retailer beat analysts’ third quarter earnings expectations and projected* strong earnings for the current quarter.

Target posted 82 cents of EPS, 8 cents better than expectations. Same-store sales rose 4.3% in the quarter. Gross margin fell to 30.5% from 30.6%, which was actually a smaller drop than expected.

Target has attempted to pull more customers into its stores by offering more food, which often has lower margins than apparel and other items. The company has also been offering cardholders 5% discounts. Traffic at its stores is on the way up, while Wal-Mart (WMT) is having trouble drawing in new customers, Reuters noted.

The company projected fourth quarter EPS at $1.43 to $1.53, versus analysts’ expectations for $1.47.



Original Article Source by Barrons.com