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Things to Note Before The TJX Companies' (TJX) Q3 Earnings
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The TJX Companies, Inc. (TJX - Free Report) is likely to register top-and bottom-line decline when it reports third-quarter fiscal 2023 earnings on Nov 16. The Zacks Consensus Estimate for revenues is pegged at $12,266 million, suggesting a drop of 2.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 80 cents per share, suggesting a decline of 4.8% from the figure reported in the prior-year quarter. The off-price apparel and home fashions retailer has a trailing four-quarter earnings surprise of 1.7%, on average. The TJX Companies delivered an earnings surprise of almost 3% in the last reported quarter.
The TJX Companies has been grappling with higher freight costs, hurting its margin performance. The company’s merchandise margin was hurt by incremental freight pressure in the last reported quarter. It also witnessed incremental wage costs, which put pressure on the pretax profit margin in the previous quarter.
For the third quarter of fiscal 2023, management is projecting 100 basis points (bps) of incremental freight expense and higher wage costs of nearly 80 bps. The company is projecting a U.S. comparable store sales decline of 3-5% in the to-be-reported quarter. It reported 16% U.S. open-only comp store sales growth in the third quarter of fiscal 2022. Management anticipates quarterly earnings per share (EPS) between 77 and 81 cents. Apart from this, the company’s exposure to international markets makes it vulnerable to currency fluctuations.
The TJX Companies is benefiting from its solid store and e-commerce growth efforts. The company is committed to boosting growth through effective marketing initiatives and loyalty programs.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The TJX Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The TJX Companies carries a Zacks Rank #3 and has an Earnings ESP of +0.63%.
Other Stocks With a Favorable Combination
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:
Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3. DG is likely to register top-line growth from the year-earlier fiscal period’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the year-ago fiscal quarter’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
Macy's (M - Free Report) currently has an Earnings ESP of +18.92% and a Zacks Rank of 3. The company is likely to register a decrease in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for M’s quarterly earnings has moved up by a penny in the past 30 days to 19 cents per share. However, the consensus estimate suggests an 84.6% decline from the year-ago quarter’s reported number.
Macy’s top line is expected to have declined year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.17 billion, which suggests a rise of 4.9% from the figure reported in the prior-year quarter.
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Things to Note Before The TJX Companies' (TJX) Q3 Earnings
The TJX Companies, Inc. (TJX - Free Report) is likely to register top-and bottom-line decline when it reports third-quarter fiscal 2023 earnings on Nov 16. The Zacks Consensus Estimate for revenues is pegged at $12,266 million, suggesting a drop of 2.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 80 cents per share, suggesting a decline of 4.8% from the figure reported in the prior-year quarter. The off-price apparel and home fashions retailer has a trailing four-quarter earnings surprise of 1.7%, on average. The TJX Companies delivered an earnings surprise of almost 3% in the last reported quarter.
The TJX Companies, Inc. Price and EPS Surprise
The TJX Companies, Inc. price-eps-surprise | The TJX Companies, Inc. Quote
Things To Note
The TJX Companies has been grappling with higher freight costs, hurting its margin performance. The company’s merchandise margin was hurt by incremental freight pressure in the last reported quarter. It also witnessed incremental wage costs, which put pressure on the pretax profit margin in the previous quarter.
For the third quarter of fiscal 2023, management is projecting 100 basis points (bps) of incremental freight expense and higher wage costs of nearly 80 bps. The company is projecting a U.S. comparable store sales decline of 3-5% in the to-be-reported quarter. It reported 16% U.S. open-only comp store sales growth in the third quarter of fiscal 2022. Management anticipates quarterly earnings per share (EPS) between 77 and 81 cents. Apart from this, the company’s exposure to international markets makes it vulnerable to currency fluctuations.
The TJX Companies is benefiting from its solid store and e-commerce growth efforts. The company is committed to boosting growth through effective marketing initiatives and loyalty programs.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The TJX Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The TJX Companies carries a Zacks Rank #3 and has an Earnings ESP of +0.63%.
Other Stocks With a Favorable Combination
Here are some other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season:
Dollar General (DG - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3. DG is likely to register top-line growth from the year-earlier fiscal period’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +6.57% and a Zacks Rank of 3. DLTR is likely to register top-line growth from the year-ago fiscal quarter’s reported number when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, suggesting 6.5% growth from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings for the fiscal third quarter is pegged at $1.16 per share, suggesting 20.8% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
Macy's (M - Free Report) currently has an Earnings ESP of +18.92% and a Zacks Rank of 3. The company is likely to register a decrease in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for M’s quarterly earnings has moved up by a penny in the past 30 days to 19 cents per share. However, the consensus estimate suggests an 84.6% decline from the year-ago quarter’s reported number.
Macy’s top line is expected to have declined year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.17 billion, which suggests a rise of 4.9% from the figure reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.