TJX Companies's Earnings Outlook

TJX Companies TJX is gearing up to announce its quarterly earnings on Wednesday, 2024-11-20. Here's a quick overview of what investors should know before the release.

Analysts are estimating that TJX Companies will report an earnings per share (EPS) of $1.10.

TJX Companies bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

Last quarter the company beat EPS by $0.04, which was followed by a 1.02% drop in the share price the next day.

Here's a look at TJX Companies's past performance and the resulting price change:

Performance of TJX Companies Shares

Shares of TJX Companies were trading at $119.67 as of November 18. Over the last 52-week period, shares are up 33.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on TJX Companies

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on TJX Companies.

With 16 analyst ratings, TJX Companies has a consensus rating of Outperform. The average one-year price target is $132.56, indicating a potential 10.77% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Ross Stores, Burlington Stores and Gap, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• For Ross Stores, analysts project an Neutral trajectory, with an average 1-year price target of $174.77, indicating a potential 46.04% upside.
• Burlington Stores is maintaining an Outperform status according to analysts, with an average 1-year price target of $309.85, indicating a potential 158.92% upside.
• As per analysts' assessments, Gap is favoring an Neutral trajectory, with an average 1-year price target of $27.17, suggesting a potential 77.3% downside.

Peer Analysis Summary

Within the peer analysis summary, vital metrics for Ross Stores, Burlington Stores and Gap are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

TJX Companies ranks at the top for Revenue Growth and Gross Profit among its peers. It also leads in Return on Equity.

Discovering TJX Companies: A Closer Look

TJX Companies is the leading off-price retailer of apparel, accessories, and home merchandise in the United States. The firm leverages its more than 21,000 global vendor relationships to procure and sell brand-name merchandise at prices 20%-60% cheaper than conventional retail channels. TJX opportunistically purchases excess inventory that stems from manufacturing overruns and retail closeout sales. The off-price retailer disperses its vast and disparate merchandise across its 5,000 global stores, creating a treasure-hunt shopping experience for consumers. Over three quarters of TJX's sales are derived from the United States, primarily via the T.J. Maxx, Marshalls, and HomeGoods banners. About 10% of sales are from Canada and 12% from Europe and Australia.

Key Indicators: TJX Companies's Financial Health

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: TJX Companies displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 5.57%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: TJX Companies's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 14.38%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): TJX Companies's ROA excels beyond industry benchmarks, reaching 3.65%. This signifies efficient management of assets and strong financial health.

Debt Management: TJX Companies's debt-to-equity ratio stands notably higher than the industry average, reaching 1.63. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for TJX Companies visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.