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.
Is TJX Companies the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add TJX Companies to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.