Earnings watch: Target, Deere
The retailer and the farm machinery maker beat Wall Street earnings estimates and raise their full-year expectations.
Updated at 8:50 a.m. ET
Target (TGT) reported first-quarter adjusted earnings Wednesday of $1.11 a share, topping analysts' estimates of $1.01 a share. Sales totaled $16.5 billion, short of the $16.86 billion analysts were expecting. Target said earlier this month that same-store sales rose 5.3% in the first quarter, its strongest quarterly performance in more than six years. The retailer raised its 2012 outlook by 5 cents per share, saying it now expects adjusted earnings of $4.60 to $4.80 a share in 2012.
Deere (DE), the farm machinery manufacturer, reported fiscal-second-quarter earnings of $2.61 a share on revenue of $9.4 billion. Analysts had expected a profit of $2.53 a share on revenue of $9.71 billion. The company expects a full-year profit of $3.35 billion, up from its previous outlook of $3.275 billion.
J.C. Penney (JCP) reported a wider-than-expected quarterly loss, and the company discontinued its dividend. The department store retailer also expects to record additional restructuring charges in 2012, so it dropped its outlook for GAAP earnings of $1.59 a share for the year. Eliminating the quarterly dividend of 20 cents a share is expected to save J.C. Penney $175 million annually.
Staples (SPLS), the office products retailer, reported Wednesday first-quarter net income of $187.1 million, or 27 cents a share, down from year-earlier earnings of $198.2 million, or 28 cents. The first quarter included $28 million in pretax expenses, or 3 cents a share, related to staff reductions and a contractual dispute from the acquisition of Corporate Express. On average, analysts were expecting the company to earn 30 cents a share in the first quarter on sales of $6.18 billion.
Teen retailer Abercrombie & Fitch (ANF) reported quarterly net income Wednesday morning of $3 million, or 3 cents a share, down from year-earlier earnings of $25.1 million, or 28 cents a share. The company was forecast by analysts to post first-quarter profit of 2 cents a share.
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