Target shares surge following solid Q3 update

Target shares rocketed in pre-market trading on Wednesday after the US retail giant most recent quarterly sales and earnings figures came in well ahead of analysts' estimates.

Net income grew to $714m in the three months ended 2 November, coming in well ahead of the $622m recorded a year earlier. Excluding one-time items, Target earned $1.36 per share, topping expectations for a reading of $1.19 a share.

Total revenues grew 4.7% to $18.67bn, also beating expectations for $18.49bn as said digital sales surged 31% during the quarter and same-store sales were up 4.5%.

As a result of the solid quarter, Target raised its profit outlook for the full year, ahead of the all-important holiday shopping season. Target now expects full-year adjusted earnings per share to be somewhere between $6.25 to $6.45 each, compared with a prior estimate of $5.90 to $6.20.

Chief executive Brian Cornell said the results were "further proof of the durability" of Target's investment strategy and its "unmatched suite of easy and convenient fulfillment options".

As of 1310 GMT, Target shares had shot up 9.43% to $121.30 each.