Target shares fell 3.9% post-earnings despite beating estimates and raising revenue growth outlook, drawing criticism from Jim Cramer.
Target Corporation (NYSE:TGT) shares dropped 3.9% following its earnings report, despite delivering a 32% earnings growth and a 5.6% rise in same-store sales. Analysts had expected only 2.4% growth in same-store sales. The company also raised its full-year revenue growth outlook to 2-4% and guided earnings toward the high end of prior forecasts.
The post-earnings decline contrasted with strong fundamentals, including a 15x forward earnings multiple and a 3.6% dividend yield. Target’s results reflected broad-based strength across categories, though market reaction suggested investor caution amid a shifting retail landscape.
Jim Cramer criticized the sell-off as excessive, arguing the quarter demonstrated a turnaround in progress. The stock rebounded the following day, though sentiment remained mixed.