Target collapses, guidance disappoints

Target collapses guidance disappoints

(Finance) – It moves at a loss Targetwhich is in sharp decline, showing a loss of 6.63% on previous values, after the retailer provided lower-than-expected guidance for the second quarter.

The company closed the first quarter with adjusted earnings per share of $2.03 below the consensus of $2.06. Revenue fell 3.1% year-over-year to $24.5 billion, while same-store sales fell 3.7% from the same quarter a year earlier.

Target expects second-quarter same-store sales to range from a flat level to a 2% increase from a year ago. Analysts had expected a 1.5% increase. The company expects earnings per share in the range of $1.95 to $2.35. The average forecast is $2.15, below the consensus estimate of $2.20.

The one-week trend of retail distributor of products is more sluggish compared to the trend of theS&P 100. This decline could trigger opportunities for the market to sell the stock.

The technical framework of Target suggests an extension of the bearish line towards the floor at USD 141.7 with a ceiling represented by the 147.4 area. The forecasts are for a prolongation of the negative phase with the test of new lows identified at 138.

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