BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Target Corporation Reports Q1 2024 Financial Results, Shares Fall 7.7% in Premarket Trading
MINNEAPOLIS, May 22, 2024 /PRNewswire/ -- Target Corporation (NYSE: TGT) announced its first quarter 2024 financial results, highlighting a significant improvement in operating income margin and growth in digital sales despite a decline in overall sales. The company reported a first quarter operating income margin rate of 5.3%, reflecting a 140 basis point improvement in gross margin rate compared to the previous year.
Key Financial Highlights for Q1 2024
- Operating Income Margin: Increased to 5.3%, up from 5.2% in Q1 2023.
- Comparable Sales: Declined by 3.7%, aligning with expectations.
- Digital Sales: Grew by 1.4%, with same-day services seeing nearly 9% growth, led by a 13% increase in Drive Up services.
- Discretionary Categories: Sales declines in discretionary categories were partially offset by continued growth in the Beauty segment.
- Apparel Sales: Showed improvement, with a nearly 4 percentage point increase compared to Q4 2023.
Operational and Strategic Developments
- Target Circle Loyalty Program: Successfully relaunched in April, attracting over 1 million new members in the first quarter.
- Inventory Management: Inventory levels were 7% lower than last year, with improved in-stock levels.
Earnings Performance
- GAAP and Adjusted EPS: Both reported at $2.03, slightly down from $2.05 in Q1 2023.
- Total Revenue: $24.5 billion, a 3.1% decline from the previous year.
- Operating Income: $1.3 billion, 2.4% lower than last year.
Guidance and Market Reaction
Q2 2024 Guidance
- Comparable Sales: Expected to increase by 0 to 2%.
- GAAP and Adjusted EPS: Forecasted between $1.95 and $2.35.
Full Year 2024 Guidance
- Comparable Sales: Projected to increase by 0 to 2%.
- GAAP and Adjusted EPS: Estimated to be between $8.60 and $9.60.
In response to these results, Target's stock price fell by 7.7% in premarket trading, reflecting investor concerns over the decline in overall sales and lower-than-expected growth in earnings.
Cost and Expense Management
- Gross Margin Rate: Improved to 27.7%, up from 26.3% in the previous year, driven by better merchandising activities and cost improvements.
- SG&A Expense Rate: Increased to 21.1% from 19.8% in 2023, due to lower sales and higher costs, including investments in pay, benefits, and marketing.
Interest Expense and Tax Rates
- Net Interest Expense: Decreased to $106 million from $147 million last year, benefiting from higher interest income due to increased cash balances.
- Effective Income Tax Rate: Increased to 22.7% from 21.1%, due to lower discrete benefits compared to the prior year.
Capital Deployment and ROIC
- Dividends: Paid $508 million, a 1.9% increase per share from last year.
- Stock Repurchase: No stock repurchases were made in Q1.
- ROIC: Improved to 15.4% for the trailing twelve months, up from 11.4% the previous year, driven by higher operating income.
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