We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Retailers Set to Gain on Likely Earnings Beat This Month
Read MoreHide Full Article
We are in the last leg of the second-quarter 2024 earnings season. So far, the results are better than expected. As of Aug 16, 464 companies of Wall Street’s broad-market index — the S&P 500 — reported their quarterly financial numbers.
Total earnings of these companies are up 8.3% year over year on 5.2% higher revenues with 79.3% beating EPS estimates and 59.5% surpassing revenue estimates. Looking at Q2 as a whole, total earnings of the S&P 500 Index are expected to be up 9.5% year over year on 5.4% higher revenues. If this materializes, it will be the highest earnings growth since first-quarter 2022. Most of the sectors have already reported earnings results with a notable exception of the retail sector.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better (Rank #1 or 2 (Buy)) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The TJX Companies Inc. (TJX - Free Report) will report second-quarter fiscal 2025 earnings results on Aug 21, before the opening bell. TJX has an Earnings ESP of +2.39%. TJX has an expected revenue and earnings growth rate of 3.3% and 9.6%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last seven days. TJX reported positive earnings surprises in the last four reported quarters with an average beat of 6.2%.
Factors That Should Drive Second-Quarter Results
According to the collective judgment of analysts, 'Net Sales- Marmaxx' should come in at $8.24 billion. The estimate suggests a change of +4.3% year over year. Analysts' assessment points toward 'Net Sales- TJX International' reaching $1.71 billion. The estimate indicates a year-over-year change of +5.2%.
The consensus among analysts is that 'Net Sales- TJX Canada' will reach $1.28 billion. The estimate suggests a change of +5% year over year. It is projected by analysts that 'Net Sales-HomeGoods' will reach $2.12 billion. The estimate indicates a change of +5.6% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Comparable store sales (YoY change) - Total of 2.8%. Compared to the current estimate, the company reported 6% in the same quarter of the previous year. Based on the collective assessment of analysts, 'Comparable store sales (YoY change) - HomeGoods' should arrive at 3.2%. Compared to the current estimate, the company reported 4% in the same quarter of the previous year.
The average prediction of analyst’s places ‘Comparable store sales (YoY change) - Marmaxx' at 3.0%. Compared to the present estimate, the company reported 8% in the same quarter last year. The consensus estimates for Consolidated Same Store sales- TJX International (Europe & Australia)' stands at 2.9%. The estimate compares to the year-ago value of 3%.
The combined assessment of analysts suggests that 'New Stores' will likely reach 39. Compared to the present estimate, the company reported 19 in the same quarter last year. Analysts predict that the 'Number of stores - Total' will reach 5,011. The estimate compares to the year-ago value of 4,884.
Analysts forecast 'Number of stores - U.S. - T.J. Maxx' to reach 1,327. The estimate compares to the year-ago value of 1,305. Analysts expect 'Number of stores - U.S. - Marshalls' to come in at 1,206. Compared to the current estimate, the company reported 1,190 in the same quarter of the previous year.
Image Source: Zacks Investment Research
Ross Stores Inc. (ROST - Free Report) will report second-quarter fiscal 2024 earnings results on Aug 22, after the closing bell. ROST has an Earnings ESP of +1.39%. ROST has an expected revenue and earnings growth rate of 4.1% and 7.4%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last 90 days. ROST reported positive earnings surprises in the last four reported quarters with an average beat of 10.6%.
Factors That Should Influence Second-Quarter Results
Ross Stores’ quarterly performance is expected to have benefited from broad-based growth in its merchandise categories, driven by positive customer response across both banners. Gains at the core business, buoyed by consumers' continued focus on value and the company’s ability to deliver value bargains to customers, are likely to have aided its performance. The company has been benefiting from robust customer demand and the easing of supply-chain headwinds in the retail industry.
ROST has been consistent with the execution of its store expansion plans, which is likely to have aided the top line. Its store expansion efforts have been focused on continually increasing penetration in existing and new markets. Gains from new stores are expected to be reflected in the quarterly results.
Additionally, Ross Stores’ margins are likely to have gained from higher merchandise margins, and lower distribution expenses, domestic freight and occupancy expenses during the quarter under review. This might have boosted the bottom-line performance.
However, Ross Stores has been cautious about the current macroeconomic and geopolitical uncertainties as well as persistent inflation, which have been affecting consumer spending on housing, food and gasoline. It has been witnessing rising SG&A expenses for a while now. Management had earlier predicted SG&A expenses to rise 5.9% year over year with a flat SG&A rate for the second quarter.
Image Source: Zacks Investment Research
Burlington Stores Inc. (BURL - Free Report) will report second-quarter fiscal 2024 earnings results on Aug 29, before the opening bell. BURL has an Earnings ESP of +6.23%. BURL has an expected revenue and earnings growth rate of 9.5% and 25.6%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last 30 days. BURL reported positive earnings surprises in three out of the last four reported quarters with an average beat of 21.7%.
Factors That Should Drive Second-Quarter Results
Burlington Stores’ second quarter results are expected to benefit from solid execution and resilience within the off-price retail sector, despite a challenging economic backdrop. BURL achieved improved sales while effectively managing expenses, leading to margin expansion and surpassing earnings expectations.
Despite cautious sentiments, Burlington's upward revision of its earnings outlook signals optimism for future growth prospects. The acquisition of BBBY leases, while initially affecting earnings, presents strategic opportunities for store expansion and potential revenue growth. We expect comps to improve by 1.8% in the current fiscal year.
Moreover, BURL’s assessment that lower-income consumer spending, although impacted by inflationary pressures, has stabilized suggesting cautious yet manageable market conditions going forward.
Image Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Retailers Set to Gain on Likely Earnings Beat This Month
We are in the last leg of the second-quarter 2024 earnings season. So far, the results are better than expected. As of Aug 16, 464 companies of Wall Street’s broad-market index — the S&P 500 — reported their quarterly financial numbers.
Total earnings of these companies are up 8.3% year over year on 5.2% higher revenues with 79.3% beating EPS estimates and 59.5% surpassing revenue estimates. Looking at Q2 as a whole, total earnings of the S&P 500 Index are expected to be up 9.5% year over year on 5.4% higher revenues. If this materializes, it will be the highest earnings growth since first-quarter 2022.
Most of the sectors have already reported earnings results with a notable exception of the retail sector.
Stocks in Focus
We have narrowed our search to three big retailers set to report earnings results this month. Each of these stocks carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better (Rank #1 or 2 (Buy)) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The TJX Companies Inc. (TJX - Free Report) will report second-quarter fiscal 2025 earnings results on Aug 21, before the opening bell. TJX has an Earnings ESP of +2.39%. TJX has an expected revenue and earnings growth rate of 3.3% and 9.6%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last seven days. TJX reported positive earnings surprises in the last four reported quarters with an average beat of 6.2%.
Factors That Should Drive Second-Quarter Results
According to the collective judgment of analysts, 'Net Sales- Marmaxx' should come in at $8.24 billion. The estimate suggests a change of +4.3% year over year. Analysts' assessment points toward 'Net Sales- TJX International' reaching $1.71 billion. The estimate indicates a year-over-year change of +5.2%.
The consensus among analysts is that 'Net Sales- TJX Canada' will reach $1.28 billion. The estimate suggests a change of +5% year over year. It is projected by analysts that 'Net Sales-HomeGoods' will reach $2.12 billion. The estimate indicates a change of +5.6% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Comparable store sales (YoY change) - Total of 2.8%. Compared to the current estimate, the company reported 6% in the same quarter of the previous year. Based on the collective assessment of analysts, 'Comparable store sales (YoY change) - HomeGoods' should arrive at 3.2%. Compared to the current estimate, the company reported 4% in the same quarter of the previous year.
The average prediction of analyst’s places ‘Comparable store sales (YoY change) - Marmaxx' at 3.0%. Compared to the present estimate, the company reported 8% in the same quarter last year. The consensus estimates for Consolidated Same Store sales- TJX International (Europe & Australia)' stands at 2.9%. The estimate compares to the year-ago value of 3%.
The combined assessment of analysts suggests that 'New Stores' will likely reach 39. Compared to the present estimate, the company reported 19 in the same quarter last year. Analysts predict that the 'Number of stores - Total' will reach 5,011. The estimate compares to the year-ago value of 4,884.
Analysts forecast 'Number of stores - U.S. - T.J. Maxx' to reach 1,327. The estimate compares to the year-ago value of 1,305. Analysts expect 'Number of stores - U.S. - Marshalls' to come in at 1,206. Compared to the current estimate, the company reported 1,190 in the same quarter of the previous year.
Image Source: Zacks Investment Research
Ross Stores Inc. (ROST - Free Report) will report second-quarter fiscal 2024 earnings results on Aug 22, after the closing bell. ROST has an Earnings ESP of +1.39%. ROST has an expected revenue and earnings growth rate of 4.1% and 7.4%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last 90 days. ROST reported positive earnings surprises in the last four reported quarters with an average beat of 10.6%.
Factors That Should Influence Second-Quarter Results
Ross Stores’ quarterly performance is expected to have benefited from broad-based growth in its merchandise categories, driven by positive customer response across both banners. Gains at the core business, buoyed by consumers' continued focus on value and the company’s ability to deliver value bargains to customers, are likely to have aided its performance. The company has been benefiting from robust customer demand and the easing of supply-chain headwinds in the retail industry.
ROST has been consistent with the execution of its store expansion plans, which is likely to have aided the top line. Its store expansion efforts have been focused on continually increasing penetration in existing and new markets. Gains from new stores are expected to be reflected in the quarterly results.
Additionally, Ross Stores’ margins are likely to have gained from higher merchandise margins, and lower distribution expenses, domestic freight and occupancy expenses during the quarter under review. This might have boosted the bottom-line performance.
However, Ross Stores has been cautious about the current macroeconomic and geopolitical uncertainties as well as persistent inflation, which have been affecting consumer spending on housing, food and gasoline. It has been witnessing rising SG&A expenses for a while now. Management had earlier predicted SG&A expenses to rise 5.9% year over year with a flat SG&A rate for the second quarter.
Image Source: Zacks Investment Research
Burlington Stores Inc. (BURL - Free Report) will report second-quarter fiscal 2024 earnings results on Aug 29, before the opening bell. BURL has an Earnings ESP of +6.23%. BURL has an expected revenue and earnings growth rate of 9.5% and 25.6%, respectively, for the current year (ending January 2025).
The Zacks Consensus Estimate for current-quarter and current-year earnings has improved over the last 30 days. BURL reported positive earnings surprises in three out of the last four reported quarters with an average beat of 21.7%.
Factors That Should Drive Second-Quarter Results
Burlington Stores’ second quarter results are expected to benefit from solid execution and resilience within the off-price retail sector, despite a challenging economic backdrop. BURL achieved improved sales while effectively managing expenses, leading to margin expansion and surpassing earnings expectations.
Despite cautious sentiments, Burlington's upward revision of its earnings outlook signals optimism for future growth prospects. The acquisition of BBBY leases, while initially affecting earnings, presents strategic opportunities for store expansion and potential revenue growth. We expect comps to improve by 1.8% in the current fiscal year.
Moreover, BURL’s assessment that lower-income consumer spending, although impacted by inflationary pressures, has stabilized suggesting cautious yet manageable market conditions going forward.
Image Source: Zacks Investment Research