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TJX Companies (TJX) stock gains on Q4 earnings beat; hikes dividend

The TJX Companies, Inc. (NYSE: TJX) reported a marked increase in fourth-quarter sales, aided by impressive comparable store performance during the holiday season. As a result, earnings climbed 19% and topped expectations. The company also hiked its quarterly dividend, as widely expected. The stock rose about 5% early Wednesday, following the announcement.

TJX Companies (TJX) stock gains on Q4 earnings beat; hikes dividend

The apparel retailer reported net income of $984.79 million or $0.81 per share for the January-Quarter, up from last year’s profit of $841.54 million or $0.68 per share. The bottom line came in above Wall Street’s prediction and the management’s guidance.

Related: TJX Q3 2020 Earnings Conference Call Transcript

Driving the earnings growth, net sales climbed to $12.21 billion from $11.13 billion in the fourth quarter of 2019. Analysts had forecast slower growth.

Comps up 6%

Total comparable store sales were up 6% year-over-year, reflecting the strong growth across all business segments.

“Our exciting brands and gift-giving assortments at great values, supported by our marketing, attracted customers around the globe during the holiday season and beyond. Fourth-quarter earnings per share of $.81 were also well above our guidance,” said CEO Ernie Herrman.

Outook

For fiscal 2021, the management expects earnings per share to be between $2.77 and $2.83, representing a 4-6% annual growth. It is looking for full-year comparable-store sales growth of 2-3%. In the first quarter of 2021, earnings are expected to be in the range of $.59 per share to $.60 per share, which reflects a 2-3% increase in comparable-store sales.

Dividend Hike

The company also announced plans to hike quarterly dividend by 13% to $0.26 per share – which will be declared in March for payment in June 2020 – and to repurchase $1.75-$2.25 billion of its stock in the current fiscal year. TJX ended the fourth quarter with a total of 4,529 stores, which is up 5% from the same period of last year.

Also see: Macy’s Q4 earnings beat on positive holiday sales

TJX Companies’ shares gained during Wednesday’s pre-market trading session, after closing the last session lower. The stock has risen 15% in the past twelve months.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Papa John’s (NASDAQ: PZZA): Q4 2019 Earnings Snapshot

— Papa John’s International (NASDAQ: PZZA) reported its fourth-quarter 2019 adjusted earnings of $0.37 per share versus $0.32 per share expected.

— Total revenue grew by 5% to $417.51 million versus $405.31 million expected. Excluding the impact of refranchising 46 domestic restaurants and a quality control center in Mexico in 2019, revenues increased by 8%.

pizza
Image for representation. Courtesy: Ivan Torres on Unsplash

— The global restaurant sales increased by 4.4% after a decline of 13% in the previous year quarter. Excluding the impact of foreign currency, global restaurant sales rose by 4.7%.

— The comparable sales in domestic company-owned restaurants increased by 4.1% and that in North America franchised restaurants rose by 3.3%. The system-wide North America comparable sales grew by 3.5% and international same-store sales rose by 2.4%.

— As of December 29, 2019, there were 5,395 Papa John’s restaurants operating in 49 countries and territories.

— Looking ahead into the full year 2020, the company expects adjusted EPS of $1.35-1.55 and GAAP EPS of $0.60-0.90. The consensus estimates EPS of $1.53.

— North America’s comparable sales are expected to be 2.5-5% for the full year and International comparable sales are predicted to be 1.5-4%. The company sees net global new unit growth of 100 to 140 net units.

— The company anticipates capital expenditures in the range of $40-50 million for the full year 2020.

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