Target Corp.'s shares rose 15.5% in premarket trading Aug. 21 after the retailer reported fiscal second quarter earnings that exceeded analysts' expectations and raised its fiscal 2019 guidance.
Target said adjusted EPS for the quarter ended Aug. 3 was $1.82, up 23.9% from $1.47 in the year-ago period and beating the mean consensus estimate for normalized EPS of $1.62, according to data compiled S&P Global Market Intelligence.
For fiscal 2019, the retailer now expects adjusted EPS between $5.90 and $6.20, compared to its previous outlook between $5.75 and $6.05.
Net earnings for the second quarter rose 17.4% to $938 million from $799 million in the year-ago period. Total revenue climbed 3.6% to $18.42 billion from $17.78 billion in the year-earlier quarter, driven by sales growth in addition to a 6.3% increase in other revenue.
Comparable sales grew 3.4% in the second quarter and about 10% over the last two years, resulting in the highest growth in over a decade, the company said.
"Traffic and sales continue to grow while our EPS reached an all-time high, driven by the strength of our team's execution and their focus on delivering for our guests," Target CEO and Chairman Brian Cornell said in a statement.
For the third quarter, the retailer forecast adjusted EPS between $1.04 and $1.24. Comparable sales in the third quarter and the second half of fiscal 2019, is expected to grow by 3.4%.
In premarket trading, Target's shares rose 15.5% to $98.79.
