Earnings Preview: The TJX Companies (TJX)

The TJX Companies, Inc. TJX is currently higher on the session by 2.14%, trading at $41.77. The company is scheduled to report earnings tomorrow, before the opening bell. • Estimates The Street is looking for Q2 earnings per share of $0.73 on revenue of $5.11 billion. These estimates have remained within a one-penny deviation over the past 90 days. The Whisper number for TJX is $0.74. • Guidance The Street is looking for Q3 EPS of $0.89 on revenue of $5.51 billion. The full year 2010 estimates are $3.36 per share on revenue of $21.82 billion; FY 2011 is at $3.72 per share on revenues of $23.26 billion. • Technical Picture TJX has been moving largely lower over the past four and a half months, retracing some of the huge move higher it made higher from the beginning of 2009, when the stock was trading below $20.00. As of late, the stock is stuck in a downward-trending channel and is trading below the 50-day moving average. • Volatility Both historical volatility and implied volatility have been down-trending over the past three months after a spike higher in mid-May. Currently HI is at 29% and IV is at 31%. The front month $42.00 straddle is trading at 41.29%; the September $42.00 straddle is trading at 29.23% The TJX Companies, Inc. is an off-price apparel and home fashions. The company operates in five business segments: three in the United States and one in each of Canada and Europe. Each of its segments has its own administrative, buying and merchandising organization and distribution network.