The TJX Companies, Inc. (NYSE: TJX) did beat estimates this morning and showed that discounters and clearance merchandise retailers that get it can do well in a slowing economy. Unfortunately, its guidance is only in-line ahead for a company where many were hoping for better results. There is nothing really bad or anything, it just looks more representative of a fairly valued stock at a time when the stock market is trying to decide its direction.
Net income for the first quarter was $194 million, and diluted earnings per share were $0.43 compared to $0.34 last year; Q1 net sales rose 6% to $4.4 billion on a consolidated comparable store sales increased 3% over last year. After a tax benefit adjustment, TJX would have posted earnings of $0.41 EPS, compared to an adjusted $0.37 last year. First Call had estimates at $0.40 EPS on $4.38 Billion in revenues.
The company sees EPS guidance at $0.40 to $0.42 EPS for the coming quarter based upon a 3% comparable store sales gain. For fiscal Jan-2009 it sees $2.20 to $2.25 EPS, but this range includes a $0.09 share benefit due to a 53rd week in the retail year; and that is based upon a 2% to 3% comparable store growth, of which about 0.5% is due to currency. Next quarter estimates are $0.43 EPS and fiscal Jan-2009 estimates are $2.22 EPS.
TJX also spent $225 million buying back shares of common stock, which retired 7 million shares.
Jon C. Ogg
May 13, 2008
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.