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The TJX Companies Gears Up for Q3 Earnings: What You Should Know

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The TJX Companies, Inc. (TJX - Free Report) is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2025 earnings on Nov. 20. The Zacks Consensus Estimate for revenues is pegged at almost $14 billion, which indicates a 5.3% increase from the year-ago quarter. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.09 per share, indicating growth of 5.8% from the year-ago quarter’s reported figure. This off-price apparel and home fashion retailer delivered an earnings surprise of 4.4% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Know About TJX’s Upcoming Results

The TJX Companies continues to thrive by focusing on delivering an exceptional shopping experience and outstanding value to customers. Its flexible off-price business model has been a key driver of growth, supported by improved merchandise margins, favorable markdowns and reduced freight costs. The company has been benefiting from robust store and e-commerce growth.

On its last earnings call, management highlighted that it reported a strong start to third-quarter fiscal 2024, with several initiatives in place to boost traffic and sales. The company is pleased with the excellent availability of high-quality branded merchandise. It is confident about providing a compelling selection of fresh products in-store and online during the fall and holiday seasons. These factors are likely to have contributed positively to the quarter under review.

The TJX Companies, Inc. Price and EPS Surprise

The TJX Companies, Inc. Price and EPS Surprise

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

The company has been capitalizing on solid buying opportunities in the marketplace, with plans to capture additional market share across all regions and continue its international expansion. TJX has been focused on delivering greater value to consumers while enhancing profitability. These trends bode well for the to-be-reported quarter.

For the third quarter of fiscal 2025, the company expects a consolidated comparable store sales increase of 2-3% and a pretax profit margin of 11.8-11.9%. Management anticipates earnings per share (EPS) between $1.06 and $1.08, indicating year-over-year growth.

Earnings Whispers for TJX

Our proven model doesn’t conclusively predict 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 not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TJX carries a Zacks Rank #3 and has an Earnings ESP of -0.09%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

Best Buy (BBY - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for BBY’s quarterly revenues is pegged at $9.63 billion, which indicates a 1.3% dip from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, the company is likely to register bottom-line growth when it reports third-quarter fiscal 2025 results. The consensus estimate for Best Buy’s earnings is pegged at $1.30 per share, calling for 0.8% growth from the year-ago quarter. BBY has a trailing four-quarter earnings surprise of 11.4%, on average.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 15.8%, on average.

Dollar Tree (DLTR - Free Report) has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $7.45 billion, which indicates 1.9% growth from the figure reported in the prior-year quarter.

The consensus estimate for Dollar Tree’s quarterly earnings has risen by 1 cent over the past 30 days to $1.07 per share. The figure calls for growth of 10.3% from the year-ago quarter’s number. DLTR delivered an average negative earnings surprise of 10.9% in the trailing four quarters.

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