The 10-second takeaway
For the quarter ended Jan. 28 (Q4), TJX Companies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins grew across the board.
TJX Companies booked revenue of $6.71 billion. The 17 analysts polled by S&P Capital IQ anticipated revenue of $6.68 billion on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $6.33 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 25 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.62 for Q4 were 48% higher than the prior-year quarter's $0.42 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 27.2%, 90 basis points better than the prior-year quarter. Operating margin was 11.4%, 280 basis points better than the prior-year quarter. Net margin was 7.1%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.59 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $25.01 billion. The average EPS estimate is $2.31.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 491 members rating the stock outperform and 63 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give TJX Companies a green thumbs-up, and 14 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 $34.48.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.