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Target Corp reports strong Q3 2011 earnings
21 Nov '11
4 min read
Third quarter bad debt expense was $40 million in 2011, down from $110 million in 2010, driven by improved trends in key measures of risk. Segment profit for the quarter increased 10 percent to $143 million in 2011, compared with $130 million in third quarter 2010. Annualized segment pre-tax return on invested capital was 23.6 percent in third quarter 2011, compared with 18.5 percent in 2010.
Canadian Segment Results
Third quarter 2011 EBIT was $(35) million due to start-up expenses and depreciation related to the company's expected market entry in 2013.
Interest Expense and Taxes
Net interest expense for the quarter was $200 million, including $15 million of interest on capitalized leases related to Target's Canadian market entry. Net interest expense was $194 million in third quarter 2010.
The company's effective income tax rate was 35.3 percent in third quarter 2011, up from 30.8 percent in 2010. Target's third quarter 2010 income tax rate reflected the favorable resolution of various state income tax matters which increased earnings per share by approximately 6 cents.
Share Repurchase
In third quarter 2011, the company repurchased approximately 4.5 million shares of its common stock at an average price of $50.45, for a total investment of $226 million. Year-to-date, the company has repurchased approximately 34.1 million shares of its common stock at an average price of $50.76, for a total investment of $1.7 billion.
Minneapolis-based Target Corporation serves guests at 1,767 stores across the United States. The company plans to open its first stores in Canada in 2013. In addition, the company operates a credit card segment that offers branded proprietary credit card products.
Canadian Segment Results
Third quarter 2011 EBIT was $(35) million due to start-up expenses and depreciation related to the company's expected market entry in 2013.
Interest Expense and Taxes
Net interest expense for the quarter was $200 million, including $15 million of interest on capitalized leases related to Target's Canadian market entry. Net interest expense was $194 million in third quarter 2010.
The company's effective income tax rate was 35.3 percent in third quarter 2011, up from 30.8 percent in 2010. Target's third quarter 2010 income tax rate reflected the favorable resolution of various state income tax matters which increased earnings per share by approximately 6 cents.
Share Repurchase
In third quarter 2011, the company repurchased approximately 4.5 million shares of its common stock at an average price of $50.45, for a total investment of $226 million. Year-to-date, the company has repurchased approximately 34.1 million shares of its common stock at an average price of $50.76, for a total investment of $1.7 billion.
Minneapolis-based Target Corporation serves guests at 1,767 stores across the United States. The company plans to open its first stores in Canada in 2013. In addition, the company operates a credit card segment that offers branded proprietary credit card products.
Target Corporation
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