Yahoo Finance Why TJX (TJX) Stock Is Up Today
What Happened:
Shares of off-price retail company TJX (NYSE:TJX) jumped 6.9% in the morning session after the company reported first quarter results that beat analysts' revenue and EPS expectations due to an increase in customer transactions. Margins also improved with gross margin increasing to 30%, up from 28.9% in the same quarter last year, due to lower freight costs and favorable mark on. It also raised its full-year earnings guidance, but the company's projections slightly missed Wall Street's estimates. Overall, the results were decent. After the initial pop the shares cooled down to $101.25, up 3.6% from previous close.
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What is the market telling us:
TJX's shares are not very volatile than the market average and over the last year have had no moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago, when the stock gained 5.2% on the news that the company reported second quarter earnings results that beat analysts' expectations for revenue and earnings per share, driven by strong outperformance in same-store sales due to "customer traffic, which increased at every division." Free cash flows also came in strong, up significantly compared to the same period last year and exceeding forecasts by a wide margin. Additionally, the company demonstrated its commitment to shareholders by returning $932 million. This was accomplished through the repurchase of $550 million worth of TJX stock and the distribution of $382 million in shareholder dividends during the quarter. Looking ahead, guidance was impressive, with the company lifting its full-year guidance for comparable store sales, pretax profit margin, and earnings per share. Management also offered some bullish updates on the current quarter, adding, "The third quarter is off to a very strong start, and we are seeing tremendous off-price buying opportunities in the marketplace." Overall, it was a positive quarter for the company.
TJX is up 8.5% since the beginning of the year, and at $101.25 per share it is trading close to its 52-week high of $101.42 from March 2024. Investors who bought $1,000 worth of TJX's shares 5 years ago would now be looking at an investment worth $1,956.
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