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Traffic Likely to Fuel TJX Companies' (TJX) Q2 Earnings

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The TJX Companies, Inc. (TJX - Free Report) is slated to release second-quarter fiscal 2020 results on Aug 20. The off-price retailer has delivered average positive earnings surprise of 1.3% in the trailing four quarters.  

Let’s see what’s in store for the company this time around.

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

What to Expect?

The Zacks Consensus Estimate for earnings in the second quarter has been stable over the past 30 days at 63 cents, which suggests growth of 6.8% from the year-ago period’s reported figure. The consensus mark for revenues is $9,893 million, indicating growth of about 6% from the year-ago quarter’s reported figure.

Factors Likely to Drive the Quarter's Results

TJX Companies’ second-quarter fiscal 2020 results are likely to benefit from robust comparable store sales (comps). The company has been witnessing year-over-year comps growth for quite some time now. Additionally, it has been seeing higher customer traffic for 19 straight quarters now, courtesy of solid brands and impressive merchandise assortments at reasonable prices. We expect such upsides to fuel results in the second quarter as well.

TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. The company’s off-price model along with its strategic store locations, impressive brands and fashion products has been driving performance, both in stores and online. Also, the company is committed toward boosting comps growth, through effective marketing initiatives and loyalty programs. Incidentally, TJX Companies’ aggressive marketing and advertising campaigns through multiple mediums (TV, radio and social media) have been boosting traffic at its stores.

The company’s gift-giving initiative, which is unique among off-price retailers, and the loyalty card program also help it improve customer engagement. These factors along with TJX Companies’ favorable inventory position at the end of first-quarter fiscal 2020 keep it well positioned ahead of the upcoming release.

What the Zacks Model Unveils

Our proven model doesn’t show a beat for TJX Companies this earnings season. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Though TJX Companies carries a Zacks Rank #3, it has an Earnings ESP of 0.00%, which makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Caseys General Stores (CASY - Free Report) has an Earnings ESP of +4.67% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington (BURL - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #2.

Target (TGT - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #2.

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