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What's in the Cards for The TJX Companies (TJX) in Q2 Earnings?

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The TJX Companies, Inc. (TJX - Free Report) is likely to see top-and-bottom-line growth when it reports second-quarter fiscal 2025 earnings on Aug 21. The consensus mark for quarterly revenues is pegged at $13.33 billion, which indicates growth of 4.5% from the prior-year quarter’s reported figure. 

The Zacks Consensus Estimate for quarterly earnings has risen by a penny in the past seven days to 92 cents per share, which calls for 8.2% growth from the figure reported in the year-ago period.  TJX has a trailing four-quarter earnings surprise of 6.2%, on average. This off-price apparel and home fashion retailer delivered an earnings surprise of 6.9% in the last reported quarter.

Things to Consider

The TJX Companies has been benefiting from its solid store and e-commerce growth efforts. The company has been rapidly expanding its footprint in the United States, Europe, Canada and Australia. During the first quarter of fiscal 2025, the company added 18 new stores, ending the quarter with 4,972 stores.

The TJX Companies, Inc. Price, Consensus and EPS Surprise

The TJX Companies, Inc. Price, Consensus and EPS Surprise

The TJX Companies, Inc. price-consensus-eps-surprise-chart | The TJX Companies, Inc. Quote

Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to bolster online sales and strengthen its e-commerce business. Additionally, the company has been committed to boosting growth through effective marketing initiatives and loyalty programs.  

We believe that The TJX Companies’ off-price model, strategic store locations, impressive brands and fashion products and efficient supply-chain management are likely to have aided its performance in the quarter under review. On its last earnings call, management stated that it began the second quarter on a positive note, which reinforces the confidence for the upcoming results. 
 
However, The TJX Companies has been dealing with the adverse impacts of the high cost of sales and operating expenses. The company expects to see incremental store wage and payroll costs during fiscal 2025, per the last earnings call. This may have affected profits to some extent in the second quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for The TJX Companies this time. 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, which is the case here. 

The TJX Companies carries a Zacks Rank #3 and has an Earnings ESP of +2.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are three other companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time:

Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number. 

Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.

Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top-and-bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, which suggests growth of 1.4% from the year-ago quarter’s reported figure.

The consensus estimate for Costco’s earnings has remained unchanged in the past 30 days at $5.02. The consensus mark for earnings implies growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.

Burlington Stores (BURL - Free Report) has an Earnings ESP of +6.24% and a Zacks Rank of 3 at present. The company is expected to register top-and-bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for BURL’s quarterly earnings has increased by a penny in the past 30 days to 94 cents. The consensus mark for earnings indicates a 56.7% surge from the figure reported in the year-ago quarter.

The consensus estimate for quarterly revenues is pegged at $2.41 billion, which calls for a rise of 11% from the top line reported in the year-ago quarter. BURL delivered a trailing four-quarter average earnings surprise of 21.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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