Target to Report Q2 09 Earnings Tuesday Morning

Target

An anxious moment is pending as Target Corporation (NYSE:TGT) is getting ready to deliver Q2 09 earnings first thing Tuesday (Aug 18th) and Wall Street is expecting Target Corporation to report earnings at 66 cents on revenue of $15.15 billion.  With the back to school shopping rampant, can this retail giant deliver better news?  Will their cost-cutting strategies give them the advantage?  Stay tuned to the market pre-opening and keep your eye on Target.

Analysts forecast second-quarter profit of 66 cents per share on revenue of $15.15 billion. Target earned $634 million, or 82 cents per share, on revenue of $15 billion in the same period a year ago.

Target has been reducing staff, tightening consumer credit card underwriting and freezing senior managers' salaries. It's also expanding further into food sales, which it believes will help drive customer traffic.  This is to help battle the fact that more than 40 percent of revenue comes from nonessentials like funky jeans and quilts, the cheap-chic formula that once was its strength has became a drag as shoppers focus on basics. The company's profits also were weighed down by woes in its credit card business.

One positive is that Target won a much publicized fight two months ago with activist shareholder William Ackman, who wanted to infuse Target's board with new blood, including himself. Ackman said the board needed new perspective in retail, credit and real estate markets to compete effectively with chief rival Wal-Mart Stores Inc., and to help boost the company's stock price. The fight became a distraction to the retailer.

Ackman has reduced his stake in Target to 4.4 percent from 7.8 percent of the retailer's outstanding shares, according to documents filed last week with the Securities and Exchange Commission.

Target reported July same-store sales 6.5 percent below July last year, a bigger drop than the 5.8 percent analysts had anticipated. Same-store sales, or sales at stores open at least a year, are a key measure of retailer's health.

Look for whether the early back-to-school sales are meeting the company's expectations, and what Target plans to do to drum up sales for the holiday season.

Target shares are above its 200 and 50 day moving average, if they can beat the Street, they are poised to make further advances.  If you are playing tomorrow's earnings call, we wish you luck and are likewise eager for an improved U.S. economy.

Target Corp.  $41.52
TGT  -0.51
Short Interest (Shares Short) 26,013,400
Days To Cover (Short Interest Ratio) 3.4
Short Percent of Float 3.49%
Short Interest - Prior 26,760,300
Short % Increase / Decrease -2.79%
Short Squeeze Ranking™ -2
% From 52-Wk High ($ 59.55 ) -43.42%
% From 52-Wk Low ($ 25.00 ) 39.79%
% From 200-Day MA ($ 37.00 ) 10.89%
% From 50-Day MA ($ 40.67 ) 2.05%
Price % Change (52-Week) -15.30%

TGT

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