TJX Companies (TJX) Stock Is on a Five-Day Win Streak After Blowout Q1 Results

TLDR

• TJX Q1 sales hit $14.32B, up 9.2% year-over-year, beating estimates by $310M
• EPS came in at $1.19, up 29% year-over-year, beating Wall Street by $0.19
• HomeGoods comparable store sales more than doubled versus a year ago
• Full-year EPS guidance raised to $5.08–$5.15; dividend lifted 13% to $0.48/quarter
• Q2 guidance came in below estimates, with EPS of $1.15–$1.17 vs. $1.19 consensus

---

TJX Companies (TJX) jumped more than 4% in premarket trading Wednesday after posting a strong first quarter that topped expectations across the board.

The TJX Companies, Inc., TJX

The stock opened at $150.87 and was on track for a fifth straight day in the green heading into the session.

Q1 revenue came in at $14.32 billion, up 9.2% year-over-year and $310 million ahead of estimates. Adjusted EPS of $1.19 beat both Wall Street and company expectations by $0.19, a 29% jump from the same quarter last year.

HomeGoods was a clear bright spot. Comparable store sales there more than doubled compared to a year ago. Overall same-store sales rose 6%, up from 3% last year, topping the 3.95% estimate.

Canadian locations also posted double-digit sales gains, adding to the broad-based strength across the business.

Full-Year Guidance Gets a Lift

Off the back of the Q1 beat, TJX raised its full-year EPS outlook to $5.08–$5.15, up from the prior range of $4.93–$5.02. The midpoint of $5.12 lines up with consensus estimates.

Full-year comparable store sales guidance was also nudged higher, now expected to rise 3%–4% versus the prior 2%–3% range. Pretax profit margin guidance moved up to 11.9%–12.0%.

TJX also increased its quarterly dividend by 13%, from $0.43 to $0.48, bringing the annualized payout to $1.92 per share — a yield of around 1.3%.

Q2 Outlook Falls Short

Not everything was a clean beat. Q2 guidance came in light.

TJX is guiding for Q2 comparable store sales growth of 2%–3%, below the 3.42% estimate. EPS guidance of $1.15–$1.17 also trails the $1.19 consensus. Pretax profit margin guidance of 11.4%–11.5% sits below the 11.6% estimate.

The softer near-term outlook didn’t appear to dampen investor enthusiasm much, with the stock still pushing higher ahead of the open.

Rival retailers also caught a lift. Ross Stores (ROST) and Burlington (BURL) both moved higher alongside TJX following the results.

Analyst sentiment heading into the print was already warm. JPMorgan raised its price target to $174 ahead of earnings, keeping an overweight rating. Truist initiated coverage with a buy rating and a $175 target. Barclays has an overweight rating and a $183 target.

Of the analysts tracked by MarketBeat, three rate TJX a strong buy and twenty-two rate it a buy. The average price target sits at $169.25.

Institutional investors hold 91.09% of the stock. Insider activity showed CEO Herrman sold 30,000 shares on March 2nd at an average price of $160.95.

The post TJX Companies (TJX) Stock Is on a Five-Day Win Streak After Blowout Q1 Results appeared first on CoinCentral.