TJX shares rally after retailer reports 4Q, stock buyback
FRAMINGHAM, Mass. (AP) — The TJX Cos. reported higher fourth-quarter earnings and said it will boost its dividend and buy back up to $3 billion of stock during the next fiscal year, sending its shares up 7 percent.
The parent of T.J. Maxx, Marshalls and other “off-price” stores reported fiscal fourth-quarter net income of $877.3 million and a 4 percent increase in comparable store sales, or sales in stores open at least a year, an important metric retailers use which excludes the effect of new or closed stores. TJX reported $677.9 million in net income for the same period last year.
On a per-share basis, the Framingham, Massachusetts-based company earned $1.37. That beat the average estimate of $1.28 per share, based on a survey of 11 analysts by Zacks Investment Research.
TJX posted revenue of $10.96 billion in the period, surpassing Street forecasts of $10.79 billion.
Analysts noted that TJX continues to benefit from a stable economy and confident consumers. Companies paying bonuses to employees after the federal tax overhaul should also help TJX going forward, one analyst said.
“Many lower- and middle-income consumers who make up the majority of off-price shoppers intend to spend a considerable proportion of the additional amount in their paychecks,” said Neil Saunders of GlobalData Retail. “Through its various brands, TJX has particularly strong exposure to these shoppers, and we believe it will get a nice chunk of the windfall.”
For the year, the company reported profit of $2.61 billion, or $4.04 per share, up from $2.3 billion, or $3.46 per share, the prior year.
Annual revenue rose to $35.86 billion from $33.2 billion.
For the current quarter ending in May, TJX expects its adjusted per-share earnings to range from 85 cents to 87 cents, with full-year earnings seen in a range of $4 to $4.08 per share.
TJX shares closed up $5.37 at $82.68.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TJX at https://www.zacks.com/ap/TJX
This story has been corrected to show that TJX’s earnings per share beat the average analyst estimate, instead of the company’s adjusted profit missing estimates.