TJX Companies Earnings: Margin Expansion Boosted by Rising Revenue, Net Income Rises

S&P 500 (NYSE:SPY) component TJX Companies Inc. (NYSE:TJX) reported its results for the first quarter. The TJX Companies is an off-price apparel and home fashions retailer in the United States and worldwide.

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TJX Companies Earnings Cheat Sheet for the First Quarter

Results: Net income for TJX Companies Inc. rose to $419.2 million (55 cents per share) vs. $266 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 57.6% from the year-earlier quarter.

Revenue: Rose 11.1% to $5.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: TJX Companies Inc. beat the mean analyst estimate of 54 cents per share. Analysts were expecting revenue of $5.75 billion.

Quoting Management: Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “We are extremely pleased that our strong momentum continued in the first quarter. Consolidated comparable store sales increased 8% and earnings per share were up 41% over last year’s adjusted EPS. We are particularly pleased that our performance was so strong across the board, with our U.S., Canadian and European businesses all delivering outstanding results.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 42.1% and in the third quarter of the last fiscal year, the figure rose 9.2%.

Revenue has risen for the last four quarters. Revenue increased 6% to $6.71 billion in the fourth quarter of the last fiscal year. The figure rose 4.8% in the third quarter of the last fiscal year from the year earlier and climbed 7.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of 62 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 50 cents a share to 51 cents over the last sixty days. The average estimate for the fiscal year is $2.39 per share, a rise from $2.26 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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