The TJX Companies, Inc. (TJX - Free Report) is slated to release first-quarter fiscal 2021 results on May 21. The leading off-price retailer has a trailing four-quarter positive earnings surprise of 3%, on average.
The Zacks Consensus Estimate for first-quarter bottom line has been revised from a loss of 4 cents per share to a loss of 16 cents in the past 30 days. Moreover, the metric suggests a significant deterioration from the year-ago quarter’s earnings of 57 cents. Further, the consensus mark for revenues is pegged at $5.78 billion, which indicates a fall of 37.7% from the figure reported in the year-ago quarter.
Key Factors to Note
Thanks to the coronavirus outbreak, TJX Companies had shut down its stores across the United States, Canada, Europe, and Australia among others effective Mar 19. Moreover, management earlier stated that the company’s online business via tjmaxx.com, marshalls.com and sierra.com have been non-operational due to the outbreak. We believe that the impact of the pandemic is likely to get reflected in the company’s fiscal first-quarter performance.
In a recent press release, management also highlighted that the company will support store employees with two weeks of pay amid coronavirus-led store closures. Apart from these, adverse impact from unfavorable currency rates cannot be ignored.
What the Zacks Model Unveils
Our proven model doesn’t predict an earnings beat for 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.
TJX Companies’ carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -60.82%.
Some Stocks With Favorable Combination
Here are some companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +0.92% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #2.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.25% and a Zacks Rank of 3.
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