Target Earnings Put Retail To The Test 03/03/2026

HOT stories for today

Market wrap:

• The S&P 500 and Nasdaq Composite ended the prior session higher after clawing back losses from earlier lows, underscoring how quickly dip-buyers stepped in despite escalating geopolitical stress. The benchmark index finished just above flat, while the Nasdaq added nearly 0.4%. The Dow Jones Industrial Average slipped 73 points, or 0.15%. Stocks opened the week on the back foot as investors weighed the widening confrontation between US and Iranian forces, then steadied as strength in megacap tech and pockets of the market tied to defense and energy offset broader caution.
• Northrop Grumman and Palantir ranked among the S&P 500’s top performers, rising 6% and 5.8%, while a roughly 3% gain in Nvidia helped lift the tone. Oil prices surged on concern that the conflict could threaten infrastructure and push fuel costs higher, reintroducing inflation risk just as markets were trying to stabilize. An Iranian Revolutionary Guard commander said the Strait of Hormuz, a critical chokepoint for global crude flows, was closed and warned ships attempting passage would be attacked, Reuters reported, citing Iranian media. In Asia, most markets retreated as the Iran conflict entered its fourth day. Attention now turns to earnings, with CrowdStrike and Target due Tuesday, followed later in the week by Broadcom and Costco.

Target Earnings on Deck as New CEO Tries to Sell Turnaround Plan

• Target reports holiday-quarter results Tuesday and will lay out its outlook for the year ahead, with new Chief Executive Officer Michael Fiddelke,  who took the job in February, using an investor meeting at the company’s Minneapolis headquarters to pitch a reset aimed at breaking a multi-year sales slump. Analysts expect earnings of $2.15 a share on revenue of $30.48 billion, according to LSEG, results that would fall short of the prior year. Target has reiterated its expectation of a low-single-digit sales decline for the quarter and forecasts fiscal 2025 adjusted EPS of $7 to $8, down from $8.86 a year earlier.
• The retailer has struggled with weakening traffic and lower basket sizes, alongside customer complaints about store conditions and merchandising, and a backlash tied to shifts in its DEI approach that Target has said weighed on sales. Meanwhile, rivals including Walmart, Costco, and TJX have posted stronger momentum. Fiddelke has said he will refocus on style and design, improve the shopping experience, and lean on technology, while stepping up investment in store labor even as the company trims roles elsewhere. Shares are down about 32% over three years but up roughly 16% this year, closing Monday at $113.17.

Stocks on the move:

• MongoDB (MDB): Shares sank 23% in extended trading after the database software maker guided to first-quarter adjusted EPS of $1.15 to $1.19 on revenue of $659 million to $664 million. Analysts surveyed by LSEG were looking for $1.21 a share and about $662 million in revenue.
• Asana (ASAN): The work-management platform slid more than 1% after issuing a muted outlook. While Asana topped fourth-quarter estimates, it projected first-quarter revenue of $202.5 million to $204.5 million versus the $204 million consensus. It guided full-year revenue to $850 million to $858 million, compared with estimates near $857 million.
• Plug Power (PLUG): Shares rose more than 7% after the hydrogen company posted stronger-than-expected fourth-quarter results. Plug reported an adjusted loss of 6 cents a share, narrower than the 10-cent loss expected, and revenue of $225 million versus the $218 million consensus.
• AST SpaceMobile (ASTS): The satellite company fell about 2% after reporting a wider fourth-quarter loss than a year earlier, even as revenue of $54.3 million topped the $41.8 million FactSet estimate.
• Credo Technology (CRDO): The stock dropped 5% after hours after its non-GAAP gross-margin outlook for the fourth quarter came in at 64% to 66%, compared with the 65.1% consensus. Credo beat third-quarter earnings and revenue estimates.

Watchlist: XOM, CVX, MDB, ASAN, ASTS, CRDO, TGT, BBY, NVDA

Key Economic Events Today:

EST time

09:55 am: USD FOMC Member Waller Speaks
11:45 am: USD FOMC Member Kashkari Speaks



Earnings

BMO (Before Market Open): Sea Limited (SE), AutoZone (AZO), Target Corp. (TGT), Viking Holdings (VIK), ON Holdings (ONON), Best Buy Co. (BBY)

AMC (After Market Close): CrowdStrike (CRWD), Ross Stores (ROST)


 

The TEFS Analyst team wishes you a successful day!