Shares of Target Corp. TGT rose 0.7% in premarket trading Tuesday, reversing earlier declines, after the discount retailer reported beat fiscal fourth-quarter profit expectations and a surprise increase in revenue, but provided a downbeat profit view. Net income for the quarter to Jan. 28 fell to $876 million, or $1.89 a share, from $1.54 billion, or $3.21 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.89 was well above the FactSet consensus of $1.40. Revenue rose 1.3% to $31.40 billion from $31.00 billion, while the FactSet consensus was for a decline to $30.68 billion. Same-store sales rose 0.7% to beat expectations of a 1.6% decline, as strength in food and beverage, beauty and household essentials offset continued weakness in discretionary categories. Looking ahead, the company expects first-quarter adjusted EPS of $1.50 to $1.90, below the FactSet consensus of $2.15, and expects full-year EPS of $7.75 to $8.75, also below expectations of $9.18. The stock has gained 0.9% over the past three months through Monday, while the Consumer Discretionary Select Sector exchange-traded fund XLY has advanced 2.7% and the S&P 500 SPX has tacked on 0.5%.
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