Target Corp. said Monday that its fourth-quarter profit climbed 19 percent as it benefited from a longer quarter that covers the key holiday sales period.
The Minneapolis-based discount retailer reported net income of $1.12 billion, or $1.29 a share, up from $939 million, or $1.06 a share, a year ago. The most recent result surpassed estimates by 2 cents a share.
Revenue jumped 16 percent, to $19.71 billion, driven by the longer, 14-week quarter that ended Feb. 3. Last year, the quarter was only 13 weeks. Same-store sales, or sales at stores open at least a year, rose 4.8 percent. Such sales are considered the best indicator of a retailer’s health.
Target cut prices on generic drugs and on some holiday items to match Wal-Mart Stores Inc. Consumers purchased electronics, such as digital cameras, helping Target’s same-store sales outpace those at its larger rival for the 10th straight quarter. Wal-Mart posted a 1.6 percent increase in same-store sales.
“The stores look very good, and they’re doing what Target does best: delivering a good experience and good value for their consumers,” said Rick Rubin, an analyst at Mercantile Bankshares Corp. in Baltimore.
Target stock fell $3.15 to close Tuesday at $59.40 on the NYSE.
In other earnings news:
-CBS Corp. swung to a profit in the fourth quarter from the year-ago period, which included a major charge to write down the value of its television and radio businesses.
New York-based CBS reported net income of $335 million, or 43 cents a share. A year ago, when it took a charge of $9.48 billion, the company posted a loss of $9.14 billion, or $12 a share.
Excluding items, CBS would have earned 60 cents a share in the most recent period. Analysts were expecting 47 cents a share. Revenue rose 2 percent, to $3.88 billion.
CBS stock dropped $1.27 to close at $30.21 on the NYSE.
-Sirius Satellite Radio Inc., which has agreed to acquire rival XM Satellite Radio Holdings Inc., reported a narrower loss for the fourth quarter as revenue more than doubled.
The New York-based firm had a net loss of $245.6 million, or 17 cents a share, compared with a loss of $311.4 million, or 23 cents a share, a year earlier. Revenue jumped to $193.4 million from $80 million. Analysts were expecting a loss of 19 cents a share.
Shares of Sirius fell 9 cents to $3.65 on the Nasdaq stock market.
