The 10-second takeaway
For the quarter ended April 28 (Q1), TJX Companies beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins increased across the board.
TJX Companies booked revenue of $5.80 billion. The eight analysts polled by S&P Capital IQ looked for a top line of $5.72 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $5.22 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 $0.55. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. GAAP EPS of $0.55 for Q1 were 62% higher than the prior-year quarter's $0.34 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 28.2%, 150 basis points better than the prior-year quarter. Operating margin was 11.9%, 350 basis points better than the prior-year quarter. Net margin was 7.2%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.85 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $25.14 billion. The average EPS estimate is $2.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 521 members out of 585 rating the stock outperform, and 64 members rating it underperform. Among 176 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give TJX Companies a green thumbs-up, and 13 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 $41.52.
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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.