Shares of retail giant Target (NYSE: TGT) gained 23.9% in August 2019, according to data from S&P Global Market Intelligence. The surge hinged on a solid second-quarter report, which sent Target's stock 19% higher in a single day.
Target's second-quarter sales rose 3.6% year over year, stopping at $18.4 billion. On the bottom line, adjusted earnings jumped 24% higher to $1.82 per diluted share. Your average Wall Street analyst would have settled for earnings near $1.62 per share on revenue in the neighborhood of $18.3 billion.
These figures added up to a barely there revenue beat and a larger earnings surprise.
This company is doing more than just tightening up the nuts and bolts of a time-honored retail model. Target is leaning into next-generation retail principles, automating its warehouses with robotics, and supporting its online sales in many new ways. Pairing these progressive ideas with Target's household-name-brand quality is already leading to impressive results. In that light, the market's positive reaction to Target's second-quarter earnings surprise makes perfect sense from a long-term perspective.
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