Target Corp. said Tuesday that its raised outlook adjusted earnings per share of $1.30 to $1.40 for the fiscal fourth quarter, that runs through January, includes a 6 cents-to-8 cents benefit from the recently enacted tax legislation. The discount retailer said net EPS, which includes non-recurring items, is expected to be higher than adjusted EPS, given an anticipated one-time change in net deferred tax liabilities as a result of tax reform. “The impact of federal tax reform on the company’s net deferred tax liabilities remains under review and cannot be determined at this time,” Target said in a statement. That said, the company expects tax reform legislation to create additional cash flow that it plans to use for capital investments, dividends and additional share repurchases. The stock rallied 4.1% in premarket trade, putting it on track to open at the highest level since Jan. 17, 2017. It has soared 19.4% over the past three months but has shed 6.0% the past 12 months, while the S&P 500 has rallied 21.1% over the past 12 months.
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