At first glance, the big drop in retailing giant Target (TGT) seems justified. It wasn’t just about missing third-quarter earnings and sales estimates. Management also slashed its full-year guidance, leaving many investors rushing for the exits. For the business week ending Nov. 22, TGT stock gave up more than 19% of equity value. That’s gargantuan for an industry stalwart.
As Barchart content partner Motley Fool mentioned, the shortfall represented “the biggest earnings miss for the company in two years.” Further, the reduction of full-year guidance to $8.60 per share — well below management’s prior target of $9.35 and analysts’ estimate of $9.55 — appeared to body slam investor sentiment.
