TJX Companies (NYSE:TJX) Issues Earnings Results

Key Points

• TJX Companies beat earnings expectations, reporting $1.19 EPS versus analysts’ estimate of $1.01. Revenue also rose 9.2% year over year, and the company lifted its FY 2027 and Q2 2027 EPS guidance.
• The retailer increased its quarterly dividend to $0.48 per share from $0.43, reflecting a 13% boost. The dividend is payable June 4, with a current annualized yield of about 1.3%.
• Wall Street remains bullish on TJX, with several firms raising price targets and maintaining Buy or Overweight ratings. The consensus analyst rating is Buy, and the average target price is $169.25.

TJX Companies (NYSE:TJX - Get Free Report) announced its quarterly earnings results on Wednesday. The apparel and home fashions retailer reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.01 by $0.18, Briefing.com reports. TJX Companies had a return on equity of 57.70% and a net margin of 9.10%.During the same quarter last year, the firm posted $0.92 earnings per share. The firm's revenue was up 9.2% on a year-over-year basis. TJX Companies updated its FY 2027 guidance to 5.080-5.150 EPS and its Q2 2027 guidance to 1.150-1.170 EPS.

TJX Companies Trading Up 0.4%

Shares of NYSE TJX opened at $150.87 on Wednesday. TJX Companies has a 12 month low of $119.84 and a 12 month high of $165.82. The company has a market cap of $166.84 billion, a price-to-earnings ratio of 30.92, a P/E/G ratio of 3.45 and a beta of 0.64. The company has a quick ratio of 0.59, a current ratio of 1.14 and a debt-to-equity ratio of 0.18. The business has a fifty day simple moving average of $156.69 and a 200-day simple moving average of $154.32.

TJX Companies Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Thursday, May 14th will be issued a dividend of $0.48 per share. This is a positive change from TJX Companies's previous quarterly dividend of $0.43. This represents a $1.92 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, May 14th. TJX Companies's dividend payout ratio (DPR) is currently 39.34%.

Analyst Ratings Changes

TJX has been the subject of a number of analyst reports. JPMorgan Chase & Co. boosted their price target on TJX Companies from $173.00 to $174.00 and gave the stock an "overweight" rating in a research report on Monday. Argus upgraded TJX Companies to a "strong-buy" rating in a report on Tuesday, March 3rd. Truist Financial assumed coverage on TJX Companies in a report on Monday. They issued a "buy" rating and a $175.00 price objective for the company. Barclays upped their price objective on TJX Companies from $172.00 to $183.00 and gave the company an "overweight" rating in a report on Thursday, February 26th. Finally, Wall Street Zen upgraded TJX Companies from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. Three equities research analysts have rated the stock with a Strong Buy rating and twenty-two have assigned a Buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $169.25.

Insider Activity at TJX Companies

In other news, CEO Ernie Herrman sold 30,000 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $160.95, for a total transaction of $4,828,500.00. Following the completion of the sale, the chief executive officer directly owned 479,316 shares of the company's stock, valued at $77,145,910.20. This represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.13% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On TJX Companies

Several hedge funds have recently modified their holdings of TJX. Corient Private Wealth LLC lifted its holdings in shares of TJX Companies by 120.7% during the second quarter. Corient Private Wealth LLC now owns 5,016,792 shares of the apparel and home fashions retailer's stock valued at $620,406,000 after purchasing an additional 2,743,676 shares during the last quarter. Amundi lifted its holdings in shares of TJX Companies by 22.1% during the third quarter. Amundi now owns 9,725,542 shares of the apparel and home fashions retailer's stock valued at $1,391,822,000 after purchasing an additional 1,761,281 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of TJX Companies by 57.3% during the fourth quarter. AQR Capital Management LLC now owns 4,814,467 shares of the apparel and home fashions retailer's stock valued at $739,550,000 after purchasing an additional 1,753,155 shares during the last quarter. Steadfast Capital Management LP lifted its holdings in shares of TJX Companies by 198.8% during the third quarter. Steadfast Capital Management LP now owns 2,053,266 shares of the apparel and home fashions retailer's stock valued at $296,779,000 after purchasing an additional 1,366,066 shares during the last quarter. Finally, Raymond James Financial Inc. lifted its holdings in shares of TJX Companies by 26.3% during the second quarter. Raymond James Financial Inc. now owns 5,952,367 shares of the apparel and home fashions retailer's stock valued at $735,058,000 after purchasing an additional 1,238,124 shares during the last quarter. 91.09% of the stock is owned by hedge funds and other institutional investors.

Key TJX Companies News

Here are the key news stories impacting TJX Companies this week:

• Positive Sentiment: JPMorgan raised its price target on TJX Companies (TJX) to $174 from $173 and kept an overweight rating, signaling confidence in further upside ahead of earnings.
• Positive Sentiment: Truist initiated coverage with a buy rating and a $175 price target, citing strength in off-price leaders like TJX and Ross Stores.
• Positive Sentiment: Analysts and Zacks commentary suggest TJX has a strong history of earnings beats and may again outperform consensus when it reports Q1 results on May 20.
• Positive Sentiment: Unusual options activity showed a sharp jump in call buying, indicating traders are positioning for an upside move into earnings.
• Neutral Sentiment: TJX is expected to report about $1.00 in EPS on $14.01 billion in revenue, and investors are watching whether bargain-hunting demand remains resilient in a mixed consumer environment.
• Neutral Sentiment: TJX also announced a 13% increase in its stock dividend, which supports the investment case but is not likely the main driver of the near-term stock move.

About TJX Companies

TJX Companies, Inc is a leading off-price retailer of apparel, footwear, home fashions and other consumer goods. The company operates multiple retail concepts that offer discounted brand-name and designer merchandise, including well-known banners such as T.J. Maxx and Marshalls in the United States, HomeGoods for home furnishings, TK Maxx in parts of Europe, and Winners and Homesense in Canada. Merchandise categories span women's, men's and children's apparel, accessories, beauty, home décor, kitchenware and small furniture, with frequent changes in assortment that create a “treasure-hunt” shopping experience for consumers.

The company's business model centers on opportunistic buying, purchasing excess, irregular or out-of-season inventory from manufacturers, department stores and other suppliers, and passing savings to customers through lower prices.

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