TJX Cos. shares drop after guidance falls below expectations
TJX Cos. shares fell 2.1% in premarket trading after the off-price retail company forecast earnings that are below FactSet estimates. For the latest quarter, net income totaled $562.17 million, or 84 cents per share, up from $549.34 million, or 80 cents per share, for the same period last year. The FactSet estimate was 81 cents. Revenue for the second quarter totaled $7.88 billion, up from $7.36 billion last year and beating the FactSet consensus of $7.84 billion. Same-store sales increased 4%, beating the FactSet consensus for a 3.5% increase. TJX sees third-quarter EPS in the range of 83 cents and 85 cents, below the 90 cents per share FactSet estimate. TJX expects wage increases to negatively impact EPS growth by 3%. TJX raised its full-year same-store sales outlook to an increase between 3% and 4%, in the range of FactSet expectations for an increase of 3.8%. The retailer sees full-year EPS in the range of $3.39 to $3.43, below the FactSet consensus of $3.48. TJX shares are up 17.2% for the past year while the S&P 500 Index is up 4.7% for the same period.
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