The 10-second takeaway
For the quarter ended May 4 (Q1), TJX Companies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins increased, operating margins were steady, net margins grew.
TJX Companies recorded revenue of $6.20 billion. The 22 analysts polled by S&P Capital IQ wanted to see net sales of $6.16 billion on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $5.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.62 for Q1 were 13% higher than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.4%, 20 basis points better than the prior-year quarter. Operating margin was 11.9%, much about the same as the prior-year quarter. Net margin was 7.3%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.36 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $27.31 billion. The average EPS estimate is $2.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 585 members out of 651 rating the stock outperform, and 66 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give TJX Companies a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TJX Companies is outperform, with an average price target of $50.13.
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