TJX Companies (TJX) Q4 revenue topped analysts’ predictions. The company reported a profit of $0.68 per share on revenue of $11.1 billion. Adjusted EPS was flat at $0.59 and comp-store sales grew 6% versus 4% growth in the prior year period. TJX stock is up about 2% during the pre-market trading session.
CEO Ernie Herrman stated that both fourth quarter sales and earnings per share exceeded the company’s expectations. Comp sales growth across the major divisions were primarily driven by customer traffic.
“Full-year adjusted earnings per share also exceeded our plans. Looking ahead to 2019, the year is off to a solid start. We are confident that we are capturing market share and are pursuing many initiatives to keep driving sales and customer traffic. Further, we are excited about the plentiful buying opportunities available to us in the marketplace for major brands,” added Herrman.
For Q1 2020, TJX estimates EPS to be in the range of $0.53 to $0.54 compared to $0.56 last year. The company expects the combination of incremental freight costs, store wage increases, and foreign currency to negatively impact first quarter EPS growth by approximately 7%.
For the fiscal year ending February 1, 2020, TJX predicts EPS to be in the range of $2.55 to $2.60, representing growth of 5-7%. On an adjusted basis, EPS is predicted to increase by 4% to 6% over the prior year’s adjusted EPS of $2.45.
Backed by the strong cash flow, TJX increased its dividend by 18% and a stock repurchase of $1.75-2.25 billion. The regular quarterly dividend of $0.23 per share will be declared in April 2019 and payable in June 2019, subject to the approval of the Board of Directors.
With $1.7 billion remaining at fiscal 2019 year end under the company’s stock repurchase programs, the Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $1.5 billion of TJX common stock from time to time.
Shares of TJX, which ended Tuesday’s trading session up 0.65% at $49.72, had gained 11% since the beginning of 2019 and 26% in the last 12 months.
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