The 10-second takeaway
For the quarter ended Oct. 27 (Q3), TJX Companies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins grew across the board.
TJX Companies reported revenue of $6.41 billion. The 20 analysts polled by S&P Capital IQ foresaw a top line of $6.28 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $5.79 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 28 earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $0.62 for Q3 were 17% higher than the prior-year quarter's $0.53 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 28.8%, 70 basis points better than the prior-year quarter. Operating margin was 11.8%, 20 basis points better than the prior-year quarter. Net margin was 7.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.41 billion. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $25.60 billion. The average EPS estimate is $2.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 553 members out of 619 rating the stock outperform, and 66 members rating it underperform. Among 184 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 170 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 $48.75.
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