The TJX Companies (NYSE:TJX)
Consumer Discretionary - Specialty Retail | Reports August 16, Before Market Opens
Key Takeaways
- The Estimize consensus is calling for earnings per share of 82 cents on $7.90 billion in revenue, 3 cents higher than Wall Street on the bottom line and $30 million on the top
- TJX Companies have been largely resilient to the rising popularity of online retailers like Amazon (NASDAQ:AMZN)
- Improving traffic trends, solid comparable store sales and higher margins have driven modest growth the past few quarters
The TJX companies is scheduled to announce its second quarter results early Tuesday morning. TJX is probably best known as the parent company of TJ Maxx, Marshalls (LON:MSLH), HomeGoods and now Sierra Trade Post. The recent acquisition of the Australian based company will be used to expand its global presence and boost revenue. Generally speaking, TJX companies have been performing modestly lately. Quarterly results have topped expectations for 4 consecutive quarters, driven by value-focused consumers. With better-than-expected results from Macy’s Inc (NYSE:M), Kohl’s Corporation (NYSE:KSS), and JC Penney Company Inc Holding (NYSE:JCP) last week, it would appear TJX is well on its way to another strong report.
The Estimize consensus is looking for earnings per share of 82 cents, 4% higher than the same period a year earlier. That estimate hasn’t moved since TJX’s most recent report in May. Revenue is anticipated to jump 7% to 7.90 billion, a marginal slowdown from previous quarters. The market typically reacts well to the company’s report. Shares, on average, increase 1% immediately following a report, reaching 2% gains in the 30 days following.
TJX has been largely resilient through rising popularity of online retailers. They’ve seen modest growth the past few quarters driven by improving traffic trends, solid comparable store sales growth and higher margins. Increased marketing and promotional initiatives can be credited with this recent uptake. The acquisition of Sierra Trade Post adds a new layer of revenue and a means to widen its worldwide footprint.
Based on previous guidance, second quarter earnings are expected in the range of 77 cents to 79 cents. Clearly the Estimize community is bullish that the company will eclipse that mark by a fairly wide margin. Revenue targets are also well above guidance from the prior quarter.
Do you think TJX can beat estimates?