TJX Companies (TJX) Stock Climbs on Solid Earnings

TJX Companies Inc (NYSE: TJX)

TJX Companies is having an incredible day in the market today, while most of the market is seeing declines. The gains are for good reason. The company reported its earnings for the most recent quarter at the open of the market this morning, blowing away expectations. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from TJX moving forward.

TJX Companies Beats Earnings Expectations & Approves Buyback!

As mentioned above, TJX is having an incredible day in the market today after releasing its earnings report for the fourth quarter. The company beat both earnings and revenue expectations as well as approved a big buyback. Here’s what we saw from a report…

  • Earnings Per Share – During the quarter, TJX produced incredible earnings. While analysts expected to see fourth quarter earnings come in at $0.94 per share, the company actually reported earnings in the amount of $0.99 per share, beating expectations by $0.05.
  • Revenue – In terms of revenue, TJX also blew away expectations. During the fourth quarter, analysts expected that the company would produce revenue in the amount of $.87 billion. However, the company actually reported revenue in the amount of $8.96 billion.
  • Buy Backs – Following the release of the overwhelmingly positive earnings report, TJX made another big announcement. A large buyback has been approved by the company’s board of directors. Through the plan, TJX plans to buy back between $1.5 billion and $2.0 billion worth of its own stock. This is incredibly important as companies tend to buy their stock back when they feel as though there is an incredible growth opportunity on the horizons. So, this is a key sign that we can expect to see future growth in the stock.

How The Market Reacted To The News

As investors, we know that the news moves the market. When positive news is released, we expect to see gains and when negative news is released, we expect to see losses. However, there are few pieces of news that have the ability to move the needle in the market quite like earnings. So naturally, we are seeing incredible gains in the value of TJX as the result of of the overwhelmingly strong earnings report. Currently (12:49), TJX is trading at $74.38 per share after a gain of $1.69 per share or 2.32% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from TJX stock. The reality is that the company has proven its ability to grow. Throughout the past four consecutive quarters, the company has beat expectations with regard to earnings. Now, with the buyback in focus, it’s clear that insiders in TJX are expecting to see incredible growth in the value of the stock. With a strong team, strong management, and incredible products, I’m expecting to see incredible gains in the value of the stock moving forward.

What Do You Think?

Where do you think TJX is headed moving forward? Let us know your opinion in the comments below!