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TJX Companies (TJX) Queued for Q4 Earnings: Things to Note

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The TJX Companies, Inc. (TJX - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers on Feb 23. The Zacks Consensus Estimate for revenues is pegged at $14,368 million, suggesting a rise of 31.3% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2022 revenues is pegged at $49,001 million, indicating growth of 52.5% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for quarterly earnings is unchanged in the past 30 days at 90 cents per share, suggesting an increase of 80% from the figure reported in the prior-year quarter. The company’s consensus mark for fiscal 2022 bottom line is pegged at $2.93 per share, indicating improvement from the year-ago period’s reported figure. The off-price apparel and home fashions retailer has a trailing four-quarter earnings surprise of almost 16%, on average. The TJX Companies delivered an earnings surprise of 3.7% in the last reported quarter.

The TJX Companies, Inc. Price, Consensus and EPS Surprise

 

The TJX Companies, Inc. Price, Consensus and EPS Surprise

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

 

Things to Note

The TJX Companies’ HomeGoods segment has been seeing robust demand for a while now. The company is also benefiting from its solid store and e-commerce growth efforts. In this regard, The TJX Companies is on track to expand its footprint fast in the United States, Europe, Canada and Australia. With an increasing number of consumers resorting to online shopping, it has undertaken several initiatives to boost online sales and strengthen its e-commerce business. On its fiscal third-quarter earnings call, management highlighted that the company looks well-positioned for the holiday selling season, with open-only comp-store sales rising in the mid-teens range at the start of fourth-quarter fiscal 2022.

That said, industry-wide supply chain bottlenecks as well as rising freight and labor costs are a concern for The TJX Companies. Management highlighted that it expects fiscal fourth-quarter pretax margin to continue facing significant expense headwinds. The company expects freight costs to have been 80-90 basis points higher than the fiscal third quarter levels.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for The 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.

The TJX Companies currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.06%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Lowe's Companies (LOW - Free Report) has an Earnings ESP of +6.81% and carries a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $1.71 suggests an increase of 28.6% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Lowe's quarterly revenues is pegged at $20.82 billion, suggesting an increase of 2.5% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 14.3%, on average.

Foot Locker (FL - Free Report) currently has an Earnings ESP of +8.80% and a Zacks Rank #3. FL is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly EPS of $1.47 suggests a fall of 5.2% from the year-ago quarter’s reported figure.

Foot Locker's top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.35 billion, which indicates an improvement of 7.3% from the figure reported in the prior-year quarter. FL has a trailing four-quarter earnings surprise of 58.1%, on average.

Costco (COST - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. COST is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly EPS of $2.67 suggests an increase of 24.8% from the year-ago period’s reported number.

Costco’s top line is expected to increase from the year-earlier quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, which suggests growth of 14% from the prior-year quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 8.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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