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Is TJX Companies Positioned for a Beat in Q2 Earnings Release?
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Key Takeaways
TJX is expected to post Q2 sales of $15.1 billion and earnings of $1.18 a share.
Comparable sales growth is likely to be supported by value appeal, younger shoppers and strong traffic.
Fresh assortments and buying opportunities may lift margins, while fuel and payroll costs add pressure.
The TJX Companies, Inc. (TJX - Free Report) is likely to witness top-and bottom-line growth when it reports second-quarter fiscal 2027 earnings on Aug. 19. The Zacks Consensus Estimate for revenues is pegged at $15.1 billion, indicating 5.1% growth from the year-ago period level.
The consensus mark for earnings has risen by a penny over the past 30 days to $1.18 a share, which suggests an increase of 7.3% from the figure reported in the year-ago period. TJX has a trailing four-quarter surprise of 8.8%, on average.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
Factors Likely to Influence TJX’s Upcoming Results
TJX’s second-quarter performance is likely to have benefited from continued consumer traction for its value proposition and treasure-hunt shopping experience. Management noted that the quarter was off to a good start and guided for comparable sales growth of 2-3%. The company’s broad appeal across income groups and ability to attract younger shoppers may have supported customer traffic and demand.
The strong availability of quality branded merchandise may have aided TJX’s ability to offer fresh assortments and compelling values. The company entered the quarter well positioned on inventory, with plentiful buying opportunities supporting merchandise flow through spring and summer. Its flexible buying model and ability to quickly chase stronger categories could also have supported sales.
Marketing initiatives aimed at attracting new shoppers and encouraging additional visits from existing customers are likely to have further aided demand. Favorable buying opportunities and execution are likely to have supported profitability, with management expecting second-quarter merchandise-margin growth and gross-margin expansion.
However, elevated fuel costs could have weighed on margins, while incremental store wage and payroll expenses were expected to pressure SG&A. Management incorporated higher fuel costs into its outlook and projected SG&A deleverage for the quarter.
Earnings Whispers for TJX
Our proven model predicts an earnings beat for The TJX Companies this time. 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, which is exactly the case here.
The TJX Companies currently carries a Zacks Rank #3 and has an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +16.66% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pinned at $26.1 billion, which indicates 3.4% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s upcoming quarter’s EPS is pegged at $2.24, which implies 9.3% growth year over year. TGT delivered a trailing four-quarter earnings surprise of 8.2%, on average.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.61 and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.2 billion, which indicates an increase of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s second-quarter fiscal 2026 EPS is pegged at $2.00, implying 7.5% year-over-year growth. DG has a trailing four-quarter earnings surprise of roughly 21%, on average.
Ross Stores, Inc. (ROST - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3. The consensus estimate for Ross Stores’ quarterly revenues is pinned at $6.1 billion, which implies 10.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.92, which calls for a 10.7% jump year over year. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
View the Zacks #1 Rank List
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Is TJX Companies Positioned for a Beat in Q2 Earnings Release?
Key Takeaways
The TJX Companies, Inc. (TJX - Free Report) is likely to witness top-and bottom-line growth when it reports second-quarter fiscal 2027 earnings on Aug. 19. The Zacks Consensus Estimate for revenues is pegged at $15.1 billion, indicating 5.1% growth from the year-ago period level.
The consensus mark for earnings has risen by a penny over the past 30 days to $1.18 a share, which suggests an increase of 7.3% from the figure reported in the year-ago period. TJX has a trailing four-quarter surprise of 8.8%, on average.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote
Factors Likely to Influence TJX’s Upcoming Results
TJX’s second-quarter performance is likely to have benefited from continued consumer traction for its value proposition and treasure-hunt shopping experience. Management noted that the quarter was off to a good start and guided for comparable sales growth of 2-3%. The company’s broad appeal across income groups and ability to attract younger shoppers may have supported customer traffic and demand.
The strong availability of quality branded merchandise may have aided TJX’s ability to offer fresh assortments and compelling values. The company entered the quarter well positioned on inventory, with plentiful buying opportunities supporting merchandise flow through spring and summer. Its flexible buying model and ability to quickly chase stronger categories could also have supported sales.
Marketing initiatives aimed at attracting new shoppers and encouraging additional visits from existing customers are likely to have further aided demand. Favorable buying opportunities and execution are likely to have supported profitability, with management expecting second-quarter merchandise-margin growth and gross-margin expansion.
However, elevated fuel costs could have weighed on margins, while incremental store wage and payroll expenses were expected to pressure SG&A. Management incorporated higher fuel costs into its outlook and projected SG&A deleverage for the quarter.
Earnings Whispers for TJX
Our proven model predicts an earnings beat for The TJX Companies this time. 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, which is exactly the case here.
The TJX Companies currently carries a Zacks Rank #3 and has an Earnings ESP of +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +16.66% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pinned at $26.1 billion, which indicates 3.4% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s upcoming quarter’s EPS is pegged at $2.24, which implies 9.3% growth year over year. TGT delivered a trailing four-quarter earnings surprise of 8.2%, on average.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.61 and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.2 billion, which indicates an increase of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s second-quarter fiscal 2026 EPS is pegged at $2.00, implying 7.5% year-over-year growth. DG has a trailing four-quarter earnings surprise of roughly 21%, on average.
Ross Stores, Inc. (ROST - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3. The consensus estimate for Ross Stores’ quarterly revenues is pinned at $6.1 billion, which implies 10.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.92, which calls for a 10.7% jump year over year. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.