Back to top

Image: Bigstock

Factors to Watch Ahead of TJX Companies (TJX) Q1 Earnings Release

Read MoreHide Full Article

The TJX Companies, Inc. (TJX - Free Report) is likely to post an increase in the top and the bottom line when it reports first-quarter fiscal 2022 results on May 19. The Zacks Consensus Estimate for earnings has moved up by a cent to 28 cents per share in the past 30 days. The estimate suggests a significant rise against a loss of 74 cents per share reported in the year-ago quarter. Notably, TJX Companies has a trailing four-quarter negative earnings surprise of 89.8%, on average. In the last reported quarter, the company reported a negative earnings surprise of 18%.

The consensus mark for first-quarter revenues is pegged at $8.4 billion, which indicates a surge of 91.5% from the figure reported in the year-ago quarter.

The TJX Companies, Inc. Price and EPS Surprise

 

The TJX Companies, Inc. Price and EPS Surprise

The TJX Companies, Inc. price-eps-surprise | The TJX Companies, Inc. Quote

 

Factors to Watch

TJX Companies has been benefiting from its efforts to strengthen the e-commerce business, as the pandemic has led to increased preference for this mode of shopping. Further, the company’s HomeGoods segment has been seeing robust demand for a while now. Incidentally, open-only comp store sales increased 12% in the HomeGoods (U.S.) segment during the fourth quarter of fiscal 2021. Apart from these, the company is committed toward boosting growth, through effective marketing initiatives and loyalty programs.  

However, The TJX Companies is witnessing coronavirus-induced hurdles like temporary store closures. In its last earnings call, management highlighted that nearly 690 stores were temporarily shut due to government mandates amid the coronavirus pandemic, at present. Most of these closed stores were situated in Europe. The company had notified that overall it anticipates stores to be closed for nearly 11% of fiscal first quarter. Overall sales, pretax margin and earnings per share are likely to have been negatively affected by these closures. Well, temporary store closures are likely to have lowered first-quarter sales by $750-$850 million. Apart from these, TJX Companies is likely to have incurred higher net costs related to the pandemic in the quarter under review.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for TJX Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TJX Companies carries a Zacks Rank #3 and an Earnings ESP of +11.80%.

More Stocks With Favorable Combinations

Here are some more companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.

Foot Locker, Inc. (FL - Free Report) currently has an Earnings ESP of +4.72% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +9.25% and carries a Zacks Rank #3.

Lowe’s Companies, Inc. (LOW - Free Report) currently has an Earnings ESP of +5.16% and a Zacks Rank #3.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.  

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>