TJX Companies (NYSE: TJX) announced its results for the first quarter on May 15, 2012. The TJX Companies is an off-price apparel and home fashions retailer in the United States and worldwide.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days.SEE: Surprising Earnings Results
The Numbers:
TJX Companies' latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported adjusted net income of 55 cents per share versus the 54 cents per share estimate and revenues of $5.8 billion versus the $5.75 billion estimate. EPS rose 61.8% while revenue climbed 11.1% from the same period last year. For the first quarter, the company reported net income of $419.2 million. According to the reported number, this is up 57.6% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote:
Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, "We are extremely pleased that our strong momentum continued in the first quarter. Consolidated comparable store sales increased 8% and earnings per share were up 41% over last year's adjusted EPS. We are particularly pleased that our performance was so strong across the board, with our U.S., Canadian and European businesses all delivering outstanding results.
A Look Back:
Net income has increased 20.7% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 57.6% from the year-earlier quarter.
Looking Ahead:
Next quarter's results are expected to be more favorable for the company. Over the past 60 days, the average estimate for the second quarter has reached 51 cents per share, up from 50 cents. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. For the fiscal year, the average estimate has moved up from $2.26 a share to $2.39 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
