Target Corp. (NYSE: TGT) reported second-quarter 2014 results before markets opened Wednesday. The big-box retailer posted adjusted earnings per share (EPS) of $0.54 and $17.73 billion in revenues. In the same period a year ago, the company reported EPS of $0.56 on revenue of $17.26 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.47 and $17.56 billion in revenue.

On a GAAP basis, Target’s diluted EPS for the quarter totaled $0.55, which excludes quarterly costs of $12 million related to the data breach the company experienced last November, among other things. For the nine months ended November 1, Target has taken pretax charges of $186 million related to last year’s data breach.

At the end of the second-quarter, Target guided adjusted third-quarter EPS at $0.40 to $0.50, well below the then-current consensus estimate of $0.65. For the full year, the company said it expected to post adjusted EPS of $3.10 to $3.30, another sharp drop from the earlier guidance of $3.60 to $3.90, and well short of the consensus estimate of $3.49.

Wednesday, Target guided fourth-quarter EPS at $1.13 to $1.23, against a consensus estimate of $1.22. For the full year, Target now expects adjusted EPS of $3.15 to $3.25, compared with a consensus estimate of $3.19.

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Target’s CEO said:

We’re pleased with our third quarter financial results, which were driven by better-than-expected performance in our U.S. Segment. We’re encouraged by the improving trend we’ve seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum. In Canada, we’ve made improvements to our operations, pricing and assortment in time for the holiday season, and we’re eager to measure how our guests respond.

Comparable store sales in the United States rose 1.2% year-over-year, with half the increase coming from brick-and-mortar stores and half coming from the company’s digital channel. The rise in U.S. sales was attributed to higher prices and a higher transaction amount, partially offset by a lower number of transactions and fewer units per transaction.

Just looking at third-quarter results compared with the company’s forecast three months ago, and then looking at the guidance going forward, raises the issue of how well Target is managing expectations. Pretty well appears to be the answer.

Shares were trading up in Wednesday’s premarket about 3.3% to $69.75, above the stock’s 52-week range of $54.66 to $68.28. Thomson Reuters had a consensus analyst price target of around $61.00 before the results were announced.

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