We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TJX Companies (TJX) Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
The TJX Companies Inc. (TJX - Free Report) is set to report third-quarter fiscal 2016 results on Nov 15, before the opening bell. Last quarter, the company posted a positive earnings surprise of 5.00%.
The company posted positive surprises in all of the previous four quarters, with an average surprise of 5.32%. Let's see how things are shaping up prior to this announcement.
Factors to Consider
TJX Companies has been posting modest earnings and revenue growth over the past few quarters backed by improvement in consumer traffic, higher margins and solid comparable-store sales growth.
The company has been reporting positive comps growth over the past 29 quarters supported by higher traffic. Its fresh collection and widespread sourcing machinery has helped it maintain a loyal customer base. The trend is anticipated to continue in the to-be-reported quarter as well.
However, the company is expected to witness a dip in margins due to higher wages paid to laborers as announced earlier in fiscal 2016. Moreover, foreign exchange headwind due to weakening of many currencies against the U.S. dollar is expected to affect the fiscal first-quarter revenues.
Based on the guidance issued during second-quarter fiscal 2016 conference call, TJX anticipates earnings in the range of 83–85 cents compared with 86 cents reported a year ago. Comparable-store sales are expected to grow 2–3%.
Earnings Whispers
Our proven model does not conclusively show that TJX is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. However, that is not the case here as you will see below:
Zacks ESP: Earnings ESP for TJX is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 87 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: TJX currently has a Zacks Rank #3 . However, a 0.00% Earnings ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks in the retail companies that have both a positive Earnings ESP and a favorable Zacks Rank are:
Hibbet Sports Inc. (HIBB - Free Report) with an Earnings ESP of +4.00% and a Zacks Rank #2.
Ruth Hospitality Group Inc. with an Earnings ESP of +6.90% and a Zacks Rank #2.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TJX Companies (TJX) Q3 Earnings: What's in the Cards?
The TJX Companies Inc. (TJX - Free Report) is set to report third-quarter fiscal 2016 results on Nov 15, before the opening bell. Last quarter, the company posted a positive earnings surprise of 5.00%.
The company posted positive surprises in all of the previous four quarters, with an average surprise of 5.32%. Let's see how things are shaping up prior to this announcement.
Factors to Consider
TJX Companies has been posting modest earnings and revenue growth over the past few quarters backed by improvement in consumer traffic, higher margins and solid comparable-store sales growth.
TJX COS INC NEW Price and EPS Surprise
TJX COS INC NEW Price and EPS Surprise | TJX COS INC NEW Quote
The company has been reporting positive comps growth over the past 29 quarters supported by higher traffic. Its fresh collection and widespread sourcing machinery has helped it maintain a loyal customer base. The trend is anticipated to continue in the to-be-reported quarter as well.
However, the company is expected to witness a dip in margins due to higher wages paid to laborers as announced earlier in fiscal 2016. Moreover, foreign exchange headwind due to weakening of many currencies against the U.S. dollar is expected to affect the fiscal first-quarter revenues.
Based on the guidance issued during second-quarter fiscal 2016 conference call, TJX anticipates earnings in the range of 83–85 cents compared with 86 cents reported a year ago. Comparable-store sales are expected to grow 2–3%.
Earnings Whispers
Our proven model does not conclusively show that TJX is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass earnings estimates. However, that is not the case here as you will see below:
Zacks ESP: Earnings ESP for TJX is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 87 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: TJX currently has a Zacks Rank #3 . However, a 0.00% Earnings ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks in the retail companies that have both a positive Earnings ESP and a favorable Zacks Rank are:
Foot Locker Inc. (FL - Free Report) with an Earnings ESP of +0.91% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hibbet Sports Inc. (HIBB - Free Report) with an Earnings ESP of +4.00% and a Zacks Rank #2.
Ruth Hospitality Group Inc. with an Earnings ESP of +6.90% and a Zacks Rank #2.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>