TJX and Toll Bros Shares Up 2% After Earnings

TJX Companies Inc. (NYSE:TJX) reported its results for the fourth quarter. Net income for TJX Companies Inc. rose to $475.3 million (62 cents per share) vs. $334.4 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 42.1% from the year-earlier quarter. Revenue rose 6% to $6.71 billion from the year-earlier quarter. TJX Companies Inc. fell in line with the mean analyst estimate of 62 cents per share. Analysts were expecting revenue of $6.72 billion.

Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “I am extremely proud of our performance in 2011, which marked another great year for TJX and underscores the power of our flexible business model to perform in almost any kind of economic environment. Consolidated comps increased 4% on top of 4% and 6% increases in the two prior years, respectively, and earnings grew substantially over significant growth in each of the past two years. Above all, we delivered extraordinary values on ever-changing assortments of current fashions and brands to consumers, and ended the year with significant gains in customer traffic. We enter a new fiscal year with considerable momentum in our business and are off to a very strong start in 2012. With favorable weather patterns in February, comp store sales are trending toward a 7% increase for the month. We believe our values separate us from other retailers and will continue to draw more customers to our stores. Inventories are lean as we begin the year, which positions us very well to flow fresh spring merchandise to our stores. Importantly, we are very proud of our ability to simultaneously make significant investments in the future growth of our business while continuing to deliver on our sales and earnings expectations. I am optimistic about our near-term abilities and remain very confident in our long-term vision to grow TJX to a $40 billion company and beyond.”

Competitors to Watch: Gordmans Stores, Inc. (NASDAQ:GMAN), Citi Trends, Inc. (NASDAQ:CTRN), Stein Mart, Inc. (NASDAQ:SMRT), Syms Corp. (NASDAQ:SYMS), Wal-Mart Stores, Inc. (NYSE:WMT), Ross Stores, Inc. (NASDAQ:ROST), Fred’s, Inc. (NASDAQ:FRED), Target Corporation (NYSE:TGT), Macy’s, Inc. (NYSE:M), and Dillard’s, Inc. (NYSE:DDS).

Toll Brothers Inc. (NYSE:TOL) swung to a loss in the first quarter, missing analysts’ forecast. Reported a loss of $2.8 million (2 cents per diluted share) in the quarter. Toll Brothers Inc. had a net income of $3.4 million or 2 cents per share in the year-earlier quarter. Revenue fell 3.6% to $322 million from the year-earlier quarter. Toll Brothers Inc. fell short of the mean analyst estimate of 3 cents per share. It fell short of the average revenue estimate of $360.8 million.

Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “The past few months have been very exciting for Toll Brothers. Our total and per-community contracts were the highest for a first quarter in five years. At first-quarter end, the value of our backlog was up 35% and our community count was up 14% compared to one year ago. We entered the Seattle market through the acquisition of CamWest. We teamed with Equity Residential to acquire a great site at 28th Street and Park Avenue South in Manhattan where Toll Brothers will own and sell condominiums on the top eighteen floors of what will be an iconic forty-story building. And our Gibraltar subsidiary acquired its fifth portfolio of distressed assets with a combined outstanding loan balance of approximately $51.4 million: This was its first portfolio of primarily commercial assets.”

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), M.D.C. Holdings, Inc. (NYSE:MDC), D.R. Horton, Inc. (NYSE:DHI), KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), Comstock Homebuilding Companies, Inc. (NASDAQ:CHCI), Meritage Homes Corporation (NYSE:MTH), The Ryland Group, Inc. (NYSE:RYL), Standard Pacific Corp. (NYSE:SPF), Hovnanian Enterprises, Inc. (NYSE:HOV), NVR, Inc. (NYSE:NVR), Beazer Homes USA, Inc. (NYSE:BZH), and M/I Homes, Inc. (NYSE:MHO)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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