The TJX Companies to Release Q4 Earnings: Should You Expect a Beat?

The TJX Companies, Inc. TJX is likely to register bottom-line growth when it reports fourth-quarter fiscal 2025 earnings on Feb. 26. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the last seven days to $1.16 per share, indicating an increase of 3.6% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2025 earnings is pegged at $4.18 per share, reflecting growth of 11.2% from the prior year’s reported figure. TJX has a trailing four-quarter earnings surprise of almost 4%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for The TJX Companies’ quarterly revenues is pegged at $16.2 billion, which indicates a 1.3% decrease from the year-ago quarter. The consensus mark for fiscal 2025 top line is pegged at $56.2 billion, which indicates growth of 3.7% from the year-ago level.The TJX Companies, Inc. Price and EPS Surprise The TJX Companies, Inc. price-eps-surprise | The TJX Companies, Inc. QuoteThings to Know About TJX’s Upcoming ResultsThe TJX Companies has been benefiting from a focus on delivering an exceptional shopping experience and unmatched value to customers every day. A key indicator of its business strength is the consistent increase in customer transactions. In addition, the company is committed to effective cost control, which is enhancing profitability.In its last earnings call, The TJX Companies highlighted that it has had a strong start to fourth-quarter fiscal 2025 and is excited about the opportunities ahead. Management is strategically positioned to capitalize on the exceptional availability in the marketplace, offering a diverse selection of exciting gifts both in-store and online throughout the holiday season.As a result, The TJX Companies expects consolidated comparable store sales growth of 2% to 3% in the fiscal fourth quarter. The company expects a pretax profit margin between 10.8% and 10.9%, with earnings per share (EPS) projected in the range of $1.12 and $1.14 for the quarter. For fiscal 2025, the company forecasts a consolidated comparable store sales increase of 3%. Management envisions a pretax profit margin of 11.3% and EPS in the range of $4.15 to $4.17 for fiscal 2025.That being said, The TJX Companies is dealing with the adverse impacts of the high expenses. In this regard, higher store wages and payroll costs are likely to have been a concern for the to-be-reported quarter’s performance. Another key challenge facing the company is a negative impact on its gross margin from shrink accruals. This is especially concerning given management's forecast for a flat or slight decline of 10 basis points in gross margin for the fiscal fourth quarter.Earnings Whispers for TJX StockOur proven model predicts an earnings beat for The TJX Companies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.The TJX Companies carries a Zacks Rank #2 and has an Earnings ESP of +0.41%.Other Stocks With the Favorable CombinationHere are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Urban Outfitters URBN currently has an Earnings ESP of +11.94% and a Zacks Rank of 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.63 billion, which indicates growth of 9.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Urban Outfitters’ fourth-quarter fiscal 2025 EPS is pegged at 89 cents, which implies an almost 29% increase year over year. URBN has a trailing four-quarter earnings surprise of 22.8%, on average.Costco Wholesale COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which suggests 8.2% growth from the prior-year quarter.The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST has a trailing four-quarter earnings surprise of 2%, on average.Sprouts Farmers Market SFM currently has an Earnings ESP of +5.63% and a Zacks Rank of 2. The company is likely to register growth in its top and bottom lines when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Sprouts Farmers’ quarterly revenues is pegged at $1.96 billion, which suggests an increase of 15.2% from the prior-year quarter.The Zacks Consensus Estimate for Sprouts Farmers’ quarterly earnings per share is pegged at 73 cents, indicating nearly 49% growth from the year-ago period. SFM has a trailing four-quarter earnings surprise of 15.3%, on average.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks