TJX Cos Stock Shares Pop On Solid Earnings Beat

On Tuesday morning before the market opened, TJX Cos. announced first quarter earnings that topped analyst expectations and sent shares surging in the premarket. The company announced 76 cents earnings per share on $7.5 billion in sales while analysts were looking for 71 cents per share on $7.3 billion in sales. TJX also announced that same-store sales were up 7% which beat analyst estimates of 3.2%, however, they did issue guidance for the year that came in slightly lower than expectations. They said they are looking for $3.35 to $3.42 which is below the estimated $3.46 analyst had looked for.

Looking at the chart you will see that shares spiked in the premarket to highs of $78.65 after closing Monday at $75.19, a 4.6% jump in price. Shares are looking to open around premarket highs which is showing that it is strong and could get some more momentum at the open however we do have resistance at $79 which could hold it back. Look for support to come in at $78 and $77 with more support at $75. Shares are currently trading well above their 200-day moving average that is at $72.46. Expect this stock to be more volatile today than normal with increased volume and range.

Ernie Herrman, Chief Executive Officer and President of The TJX Companies (NYSE:TJX), Inc., stated, “It is great to start 2016 with such a strong quarter! Our momentum continued with a consolidated comparable store sales increase of 7% over 5% growth last year, and earnings per share increased 10%. We are particularly pleased with our very strong customer traffic, which drove the comp increases at every division. This tells us that our strategies to bring consumers exciting values on an eclectic and ever-changing mix of the right fashions and brands, sourced from across the globe, are working. We are confident that we are growing our customer base and gaining market share. With our excellent first quarter results, we are raising our full year earnings per share and comp sales guidance, and the second quarter is off to a solid start. We see many opportunities in the U.S. and internationally for continued successful growth. We are extremely focused on achieving our goals for 2016 and motivated to surpass them. TJX has an exciting future ahead, and we have a strategic long-term vision to grow to be a $40 billion company and beyond!”

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The TJX Companies, Inc. (TJX) is an off-price apparel and home fashions. The Company operates through four segments: Marmaxx, HomeGoods, TJX Canada and TJX Europe. The Marmaxx and HomeGoods business offers family apparel, home fashions, accent furniture, lamps, rugs, wall decor, decorative accessories and giftware and other merchandise. The TJX Canada offers jewelry and home fashions. TJX Europe operates the T.K. Maxx and HomeSense chains in Europe. The Company operates approximately 3,461 stores in countries, including the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria and Australia.

Written By: Ticker.tv News