Executive Summary

• Target reported adjusted 3Q18 EPS of $1.09, missing the $1.11 consensus estimate. Sales were $17.59 billion, missing the $17.70 billion consensus estimate.
• Comps increased 5.1%, based on a 5.3% increase in the number of transactions, offset by a 0.2% decline in the average transaction amount. Online comps were up 49%.
• The company reiterated 2018 annual adjusted EPS guidance of $5.30–$5.50 and expects sales growth of 5% for Q4, i.e., $23.9 billion, above the $22.91 consensus estimate.