Yahoo Finance The TJX Companies (TJX) Q1 Earnings Coming Up: Factors to Note
The TJX Companies, Inc. TJX is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2025 earnings on May 22.
The Zacks Consensus Estimate for quarterly revenues is pegged at $12.5 billion, suggesting an increase of 5.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share, indicating 14.5% growth from the year-ago quarter’s figure. The off-price retailer has a trailing four-quarter earnings surprise of 6.3%, on average.
The TJX Companies, Inc. Price and EPS Surprise
The TJX Companies, Inc. price-eps-surprise | The TJX Companies, Inc. Quote
Things To Note
The TJX Companies is experiencing positive trends in the Marmaxx segment, supported by strong performance in apparel and home goods categories. Robust momentum in its HomeGoods division, courtesy of the rise in customer traffic, bodes well.
The company is dedicated to enhancing growth through effective marketing strategies and loyalty programs. Management is also on track with several initiatives to strengthen its e-commerce business. The continuation of these trends is likely to have aided TJX’s performance in the to-be-reported quarter.
For the fiscal first quarter, it expects an overall comparable store sales increase of 2-3%. Management expects a quarterly pretax profit margin of 10.5-10.6% for the quarter under review. Management envisions fiscal first-quarter earnings per share (EPS) in the range of 84-86 cents, reflecting year-over-year growth.
Yet, the company is not immune to the adverse impacts of the high cost of sales and operating expenses. Management anticipates fiscal first-quarter SG&A expenses, as a percentage of sales of 19.5%, up 50 basis points, thanks to incremental store wage and payroll costs.
Unlocking Value in TJX
From a valuation perspective, TJX Companies’ shares present an attractive opportunity, trading at a discount relative to industry benchmarks. With a forward 12-month price-to-earnings ratio of 23.78, below the industry’s average of 29.61, the stock offers compelling value for investors seeking exposure to the sector.
Recent market movements show TJX’s shares rising 2.2% in the past three months compared with the industry’s growth of 4.9%. Trading at $100.29 as of May 17, the company’s shares are likely to gain momentum, as our proven model predicts that the company is likely to beat earnings estimates in the impending release.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The TJX Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The TJX Companies has a Zacks Rank #2 and an Earnings ESP of +3.47% at present.
More Stocks With Favorable Combination
Here are some more companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Dollar Tree DLTR currently has an Earnings ESP of +2.24% and a Zacks Rank of 3. The company is likely to register a top-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Dollar Tree’s quarterly revenues is pegged at $7.6 billion, suggesting growth of 4.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
However, the Zacks Consensus Estimate for Dollar Tree’s quarterly earnings of $1.45 suggests a drop of 1.4% from the year-ago quarter’s levels. DLTR has a trailing four-quarter negative earnings surprise of 1.9%, on average.
Macy’s M currently has an Earnings ESP of +48.57% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly EPS of 18 cents suggests a sharp decline from the year-ago tally of 56 cents.
Macy’s top line is also expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which suggests a decline of 3.2% from the prior-year quarter’s figure. Macy’s has a trailing four-quarter earnings surprise of 47.7%, on average.
American Eagle Outfitters AEO currently has an Earnings ESP of +6.84% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly EPS of 27 cents suggests an increase of 58.8% from the year-ago quarter’s levels.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, calling for an increase of 5.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
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Macy's, Inc. (M) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
