=Target (TGT) reported earnings on Wed 17 March 17 (b/o)

Target beats by $0.30, beats on revs; guides Q2 EPS in-line; Q1 comps -1.3%; sees Q2 comps declining by low single digits; reaffirms FY18 EPS & comp guidance :

• Reports Q1 (Apr) earnings of $1.21 per share, excluding non-recurring items, $0.30 better than the Capital IQ Consensus of $0.91; revenues fell 1.1% year/year to $16.02 bln vs the $15.63 bln Capital IQ Consensus. First quarter comparable sales decreased 1.3 percent (ests called for decline of ~3.5%), driven by small declines in both traffic and basket size. Comparable digital channel sales increased 22 percent, on top of 23 percent growth in first quarter 2016.
• Co issues in-line guidance for Q2, sees EPS of 0.95-1.15, excluding non-recurring items, vs. $1.00 Capital IQ Consensus Estimate. Co sees expects a low single digit decline in Q2 comparable sales.
• Co reaffirms guidance for FY18 of $3.80-4.20 versus $4.01 Capital IQ consensus.  Target did not update its full year guidance for GAAP EPS from continuing operations and Adjusted EPS, but acknowledged that better-than-expected first quarter performance increases the probability that the Company will finish the year above the midpoint of its prior guidance.  For full-year 2018, the Company continues to expect a low single digit decline in comparable sales.