TJX tops analysts’ estimates for earnings and revenue in fiscal Q3

TJX tops analysts’ estimates for earnings and revenue in fiscal Q3
Written by:
Wajeeh Khan
18th November, 18:44
Updated: 18th November, 18:46
  • TJX tops analysts’ estimates for earnings and revenue in fiscal Q3.
  • The retailer to reinstate 19.56 pence per share of dividend in Q4
  • TJX refrains from giving guidance due to the COVID-19 uncertainties.

The TJX Companies Inc. (NYSE: TJX) published its financial results for the fiscal third quarter on Wednesday that topped analysts’ estimates for earnings and revenue. The company also expressed confidence that it will declare a dividend next month.

The company shares jumped 3.4% in premarket trading. TJX closed the regular session about 1% up on Wednesday, becoming a winning stock – that you can learn how to pick here. On a year to date basis, TJX is currently 3% up in the stock market after a massive 70% recovery since its low in March due to the COVID-19 disruptions.  

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TJX Q3 financial results versus analysts’ estimates

TJX said that net income in the third quarter came in at £652.19 million that translates to 53.43 pence per share. In the comparable quarter of last year, its net income was capped at a lower £623.30 million or 51.17 pence per share.

The American multinational said that it generated £7.62 billion of sales in Q3 versus the year-ago figure of a higher £7.86 billion. In separate news from North American, Canadian supermarket company, Metro Inc., said its sales came in 7.4% higher in the fiscal fourth quarter.

According to FactSet, experts had forecast the company to print £7.06 billion of sales in the recent quarter. Their estimate for earnings per share stood at 30.10 pence. In an announcement late last month, TJX said it had elected C. Kim Goodwin to the board, effective immediately.

TJX also said on Wednesday that comparable sales attributed to open-only stores slipped 5% in the third quarter. 470 of its stores are still shut due to the ongoing COVID-19 crisis. The majority of these stores are located in Europe.

TJX did not give guidance due to the COVID-19 uncertainties

The off-price department store cooperation said on Wednesday that it will reinstate 19.56 pence per share of dividend in Q4. TJX said that it concluded the third quarter with a cash balance of £7.98 billion.

It, however, refrained from giving guidance due to the COVID-19 uncertainties. In the first two weeks of the current quarter, the retailer added, same-store sales (open-only) have posted a 7% decline.

TJX performed fairly upbeat in the stock market last year with an annual gain of roughly 40%. At the time of writing, the Framingham-based company has a market cap of £57.71 billion and a price to earnings ratio of 113.30.

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