TJX Companies Inc. (The) Up 3.15% To $77.62 After Earnings Beat

Wednesday, November 16, 2022 - TJX Companies Inc. (The) (TJX) reported upside earnings and downside revenues.

Analyst expectations for TJX Companies Inc. (The) earnings per share (EPS) were at $0.80, with the company surpassing those estimates with a reported EPS of $0.86, leading to a positive surprise of $0.06 per share (7%). TJX Companies Inc. (The)'s earnings rose 2% year-over-year as the firm reported an EPS of $0.84 in its year-ago quarter. The positive annual growth shows the Consumer Cyclical company is performing decently amid recent economic conditions.

Revenues were downbeat at $12.2 billion. That represents a 2.92% decrease in revenues from the year-ago report and is 1.09% lower than consensus estimates set at $12.3 billion.

The stock is up 3.15% to $77.62 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned TJX Companies Inc. (The) a Bullish Sentiment Rank from InvestorsObserver.

TJX Companies Inc. (The) has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 91, putting TJX Companies Inc. (The) in the top 25% of stocks. The firm set a 52-week low on May 17, 2022 at $53.69 and set a 52-week high on January 4, 2022 at $77.35.

TJX is a leading off-price retailer of apparel, home fashions, and other merchandise. It sells a variety of branded goods, opportunistically buying inventory from a network of over 21,000 vendors worldwide. TJX targets undercutting conventional retailers' regular prices by 20%-60%, capitalizing on a flexible merchandising network, relatively low-frills stores, and a treasure-hunt shopping experience to drive margins and inventory turnover. TJX derived 79% of fiscal 2022 revenue from the United States, with 11% from Europe (mostly the United Kingdom and Germany), 9% from Canada, and the remainder from Australia. The company operated 4,689 stores at the end of fiscal 2022 under the T.J. Maxx, T.K. Maxx, Marshalls, HomeGoods, Winners, Homesense, Winners, and Sierra banners.