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The TJX Companies Q3 Earnings Coming Up: Key Factors to Watch
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Key Takeaways
TJX expects sales growth to benefit from strong demand for value merchandise and fresh assortments.
HomeGoods and international demand, along with better Marmaxx execution, may support TJX's sales.
TJX's operating efficiencies may support profits, but higher fuel costs could pressure margins.
The TJX Companies, Inc. (TJX - Free Report) is likely to witness top- and bottom-line growth when it reports third-quarter fiscal 2027 earnings on Nov. 18, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $15.8 billion, calling for an increase of 4.6% from the year-ago period figure.
The consensus mark for earnings has remained unchanged over the past 30 days at $1.33 a share, suggesting a 3.9% rise from the year-ago period’s figure. TJX has a trailing four-quarter surprise of 7.4%, on average.
The TJX Companies, Inc. Price, Consensus and EPS Surprise
Factors Likely to Influence TJX’s Upcoming Results
TJX’s third-quarter fiscal 2027 performance is likely to have benefited from sustained demand for value-oriented merchandise and its differentiated off-price retail model. Strong branded merchandise availability, compelling pricing and fresh assortments may have encouraged customer visits and supported sales. Management indicated that the quarter started strongly and projected comparable sales growth of 2-3%. Consolidated revenues are expected between $15.6 billion and $15.8 billion, calling for year-over-year growth of 3-5%.
The company’s HomeGoods, Canadian and international businesses are likely to have continued benefiting from healthy customer demand, diversified merchandise assortments and market share gains. HomeGoods’ strength in decorative, seasonal and replenishment categories, alongside solid customer engagement across Canada, Europe and Australia, is likely to have supported performance. Improving merchandise execution at Marmaxx, as indicated by management at the beginning of the quarter, may have aided sales recovery.
TJX’s extensive sourcing network and favorable merchandise availability are expected to have supported assortment freshness and buying flexibility. Fall gifting initiatives and targeted digital and social media campaigns may have strengthened customer engagement and attracted shoppers. Operational efficiencies and expected SG&A leverage may have supported profitability. The company anticipated an adjusted pretax profit margin of 12.3-12.4% and adjusted earnings of $1.30-$1.32 per share for the quarter.
However, higher fuel and freight costs could have weighed on profitability. Management projected an adjusted gross margin of 32.1-32.2% for the third quarter, implying a 40-50-basis-point year-over-year contraction, primarily due to higher fuel costs.
Earnings Whispers for TJX
Our proven model doesn’t conclusively predict 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 not the case here.
The TJX Companies currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +8.66% and a Zacks Rank of 2. The consensus estimate for quarterly revenues stands at $11.1 billion, which suggests 4.5% 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 Dollar General’s upcoming quarter’s EPS is pegged at $1.40, which calls for a 9.4% increase from the year-ago period’s figure. DG delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at nearly $3 billion, which indicates 4.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $5.60, which calls for almost 9% growth from the figure reported in the prior-year quarter. ULTA delivered a trailing four-quarter earnings surprise of 7.6%, on average.
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +7.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for KR’s upcoming quarter’s revenues is pegged at $34.6 billion, suggesting a 2.1% jump from the figure reported in the prior-year quarter.
The consensus estimate for Kroger’s upcoming quarter’s EPS is pegged at $1.16 per share, implying 10.5% growth from the year-ago quarter’s earnings of 36 cents. KR delivered a trailing four-quarter earnings surprise of 2.7%, on average.
View the Zacks #1 Rank List
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The TJX Companies Q3 Earnings Coming Up: Key Factors to Watch
Key Takeaways
The TJX Companies, Inc. (TJX - Free Report) is likely to witness top- and bottom-line growth when it reports third-quarter fiscal 2027 earnings on Nov. 18, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $15.8 billion, calling for an increase of 4.6% from the year-ago period figure.
The consensus mark for earnings has remained unchanged over the past 30 days at $1.33 a share, suggesting a 3.9% rise from the year-ago period’s figure. TJX has a trailing four-quarter surprise of 7.4%, 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 third-quarter fiscal 2027 performance is likely to have benefited from sustained demand for value-oriented merchandise and its differentiated off-price retail model. Strong branded merchandise availability, compelling pricing and fresh assortments may have encouraged customer visits and supported sales. Management indicated that the quarter started strongly and projected comparable sales growth of 2-3%. Consolidated revenues are expected between $15.6 billion and $15.8 billion, calling for year-over-year growth of 3-5%.
The company’s HomeGoods, Canadian and international businesses are likely to have continued benefiting from healthy customer demand, diversified merchandise assortments and market share gains. HomeGoods’ strength in decorative, seasonal and replenishment categories, alongside solid customer engagement across Canada, Europe and Australia, is likely to have supported performance. Improving merchandise execution at Marmaxx, as indicated by management at the beginning of the quarter, may have aided sales recovery.
TJX’s extensive sourcing network and favorable merchandise availability are expected to have supported assortment freshness and buying flexibility. Fall gifting initiatives and targeted digital and social media campaigns may have strengthened customer engagement and attracted shoppers. Operational efficiencies and expected SG&A leverage may have supported profitability. The company anticipated an adjusted pretax profit margin of 12.3-12.4% and adjusted earnings of $1.30-$1.32 per share for the quarter.
However, higher fuel and freight costs could have weighed on profitability. Management projected an adjusted gross margin of 32.1-32.2% for the third quarter, implying a 40-50-basis-point year-over-year contraction, primarily due to higher fuel costs.
Earnings Whispers for TJX
Our proven model doesn’t conclusively predict 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 not the case here.
The TJX Companies currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +8.66% and a Zacks Rank of 2. The consensus estimate for quarterly revenues stands at $11.1 billion, which suggests 4.5% 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 Dollar General’s upcoming quarter’s EPS is pegged at $1.40, which calls for a 9.4% increase from the year-ago period’s figure. DG delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at nearly $3 billion, which indicates 4.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s upcoming quarter’s EPS is pegged at $5.60, which calls for almost 9% growth from the figure reported in the prior-year quarter. ULTA delivered a trailing four-quarter earnings surprise of 7.6%, on average.
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +7.26% and a Zacks Rank of 3. The Zacks Consensus Estimate for KR’s upcoming quarter’s revenues is pegged at $34.6 billion, suggesting a 2.1% jump from the figure reported in the prior-year quarter.
The consensus estimate for Kroger’s upcoming quarter’s EPS is pegged at $1.16 per share, implying 10.5% growth from the year-ago quarter’s earnings of 36 cents. KR delivered a trailing four-quarter earnings surprise of 2.7%, on average.