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How Do These 2 Retail Giants Shape Up Heading Into Earnings?
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Earnings season is undoubtedly one of the most critical periods for stocks, with companies finally breaking the silence and revealing what’s transpired behind closed curtains.
Many companies have reported thus far, with many scheduled to do the same in the upcoming weeks.
Two companies, Target (TGT - Free Report) and The TJX Companies (TJX - Free Report) , are slated to unveil their quarterly results within the next week. Target will report on February 28th, whereas The TJX Companies will report on February 22nd, both before the market open.
How do the companies stack up heading into their releases? We can use results from another retailer, Walmart (WMT - Free Report) , as a small gauge. Let’s take a closer look.
Walmart Q4
Walmart posted better-than-expected results, reporting earnings of $1.71 per share and growing a strong 12% year-over-year.
Quarterly revenue totaled $164 billion, again exceeding our consensus estimate of $159.7 billion and climbing 7.3% year-over-year.
There were several notable highlights within the release, including –
Walmart U.S. comparable sales climbed 8.3% year-over-year, and eCommerce witnessed 17% growth while the company continued to gain market share in grocery.
In addition, Walmart International net sales tallied $27.6 billion, growing a solid 2.1% year-over-year. Impressively, Sam’s Club comparable sales climbed by 8.3%, with the company exiting the quarter with memberships at an all-time high.
And to top it off, the titan retailer’s global advertising business grew more than 21%, primarily driven by solid growth within Walmart Connect in the U.S.
Doug McMillion, CEO, on the solid quarter, “We’re excited about our momentum. The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year. We built momentum in the third quarter and that continues. We are well-positioned to start this fiscal year.”
Now, onto TGT and TJX.
Target
Quarterly Estimates –
A singular analyst has lowered their outlook for the quarter to be reported, with the Zacks Consensus EPS Estimate of $1.39 indicating a pullback of roughly 55% year-over-year.
Image Source: Zacks Investment Research
Our consensus revenue estimate sits at $30.7 billion, suggesting a negative change of 1% from the year-ago quarter.
Quarterly Performance –
Rising costs have impacted the company significantly, further reflected by its three consecutive misses on the bottom line.
Top line results have been more positive, with the company exceeding revenue expectations in two of its last three prints. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
The TJX Companies
Quarterly Estimates –
Analysts have been silent about the upcoming release, with no earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $0.89 reflects a positive 14% year-over-year change.
Image Source: Zacks Investment Research
Further, our consensus revenue estimate stands firm at $14.1 billion, which would pencil in a slight 2% gain from the year-ago quarter.
Quarterly Performance –
TJX has posted primarily mixed quarterly results, exceeding bottom line estimates in three consecutive quarters but falling short of revenue expectations in each instance.
In its latest release, TJX reported EPS 7.5% above estimates but fell short of sales expectations by 1%.
Image Source: Zacks Investment Research
Putting Everything Together
Earnings season continues to unravel, with an extensive list of companies delivering quarterly prints daily.
We’ve received results from many companies so far, and soon, we’ll hear from Target (TGT - Free Report) and The TJX Companies (TJX - Free Report) .
A peer, Walmart (WMT - Free Report) , delivered its quarterly results today, with the company posting better-than-expected results and enjoying solid growth.
Heading into their releases, Target and The TJX Companies both carry a Zacks Rank #3 (Hold).
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How Do These 2 Retail Giants Shape Up Heading Into Earnings?
Earnings season is undoubtedly one of the most critical periods for stocks, with companies finally breaking the silence and revealing what’s transpired behind closed curtains.
Many companies have reported thus far, with many scheduled to do the same in the upcoming weeks.
Two companies, Target (TGT - Free Report) and The TJX Companies (TJX - Free Report) , are slated to unveil their quarterly results within the next week. Target will report on February 28th, whereas The TJX Companies will report on February 22nd, both before the market open.
How do the companies stack up heading into their releases? We can use results from another retailer, Walmart (WMT - Free Report) , as a small gauge. Let’s take a closer look.
Walmart Q4
Walmart posted better-than-expected results, reporting earnings of $1.71 per share and growing a strong 12% year-over-year.
Quarterly revenue totaled $164 billion, again exceeding our consensus estimate of $159.7 billion and climbing 7.3% year-over-year.
There were several notable highlights within the release, including –
Walmart U.S. comparable sales climbed 8.3% year-over-year, and eCommerce witnessed 17% growth while the company continued to gain market share in grocery.
In addition, Walmart International net sales tallied $27.6 billion, growing a solid 2.1% year-over-year. Impressively, Sam’s Club comparable sales climbed by 8.3%, with the company exiting the quarter with memberships at an all-time high.
And to top it off, the titan retailer’s global advertising business grew more than 21%, primarily driven by solid growth within Walmart Connect in the U.S.
Doug McMillion, CEO, on the solid quarter, “We’re excited about our momentum. The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year. We built momentum in the third quarter and that continues. We are well-positioned to start this fiscal year.”
Now, onto TGT and TJX.
Target
Quarterly Estimates –
A singular analyst has lowered their outlook for the quarter to be reported, with the Zacks Consensus EPS Estimate of $1.39 indicating a pullback of roughly 55% year-over-year.
Image Source: Zacks Investment Research
Our consensus revenue estimate sits at $30.7 billion, suggesting a negative change of 1% from the year-ago quarter.
Quarterly Performance –
Rising costs have impacted the company significantly, further reflected by its three consecutive misses on the bottom line.
Top line results have been more positive, with the company exceeding revenue expectations in two of its last three prints. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
The TJX Companies
Quarterly Estimates –
Analysts have been silent about the upcoming release, with no earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $0.89 reflects a positive 14% year-over-year change.
Image Source: Zacks Investment Research
Further, our consensus revenue estimate stands firm at $14.1 billion, which would pencil in a slight 2% gain from the year-ago quarter.
Quarterly Performance –
TJX has posted primarily mixed quarterly results, exceeding bottom line estimates in three consecutive quarters but falling short of revenue expectations in each instance.
In its latest release, TJX reported EPS 7.5% above estimates but fell short of sales expectations by 1%.
Image Source: Zacks Investment Research
Putting Everything Together
Earnings season continues to unravel, with an extensive list of companies delivering quarterly prints daily.
We’ve received results from many companies so far, and soon, we’ll hear from Target (TGT - Free Report) and The TJX Companies (TJX - Free Report) .
A peer, Walmart (WMT - Free Report) , delivered its quarterly results today, with the company posting better-than-expected results and enjoying solid growth.
Heading into their releases, Target and The TJX Companies both carry a Zacks Rank #3 (Hold).