Dissappointing 4Q Guidance for TJX Companies Despite Solid 3Q

Oppenheimer published its Company Update on TJX Companies TJX following 3Q results. TJX reported FY3Q11 EPS of $0.92 vs. Oppenheimer's consensus of $0.91. Revenues increased 5% to $5.526B while comps rose 1% vs. 7% ly (+3% at Winners/Homesense, +3% at Homegoods, +1% at Marmaxx, -2% at AJ Wright and -3% at TK Maxx). Oppenheimer writes, "While inventories and open-to-buy positioning remain a positive, the competitive full-priced retail landscape, execution issues at T.K. Maxx, upcoming difficult compares (+12% in FY4Q11; +9% FY1Q12) and a valuation roughly in line with its historic average of 13x cause us to stay on the sidelines." TJX is trading at $45.63.