Investors prefer Wal-Mart over Target earnings

This morning we got to see competing earnings reports from retail giants Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT). In short, WMT is trying to hang on and TGT is still growing. The same-store-sales are also forecast to be up.

Wal-Marts earnings were 11% higher than Q3 2005 earnings at $2.6 billion, or $0.63 per share ($0.62 after tax ruling). Revenues were $84.5 billion. Analysts were expecting $0.59 and $84.5 billion. The company also guided next quarter EPS range to $0.88 to $0.92 and fiscal EPS to $0.85 to $2.89. The retail behemoth also put Q4 same-store-sales growth at 1% to 2%, which is only a week after it forecast flat same-store-sales in November.

Target posted a 14% rise in earnings to $506 million or $0.59 EPS on revenues of $13.57 billion. Analysts were looking for $0.55 and $13.58 billion. Target also maintained estimates for November same-store-sales growth of 4% to 7%.

TGT shares are up 2.5% at $59.25 in pre-market activity; 52-week trading range is $44.70 to $60.34.

WMT shares are now up 3.5% at $47.95 in pre-market activity; 52-week trading range $42.31 to $52.15.

While Target's results look better overall and on the surface, Wal-Mart's are actually better since the company has lowered the bar. WMT also looks better in relation to its 52-week highs.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.