TJX Companies Posts Higher Q3 Profit; Ups FY Outlook - Quick Facts

(RTTNews) - TJX Companies, Inc.'s (TJX) third-quarter net income advanced to $622.66 million, or $0.86 per share, from $461.55 million, or $0.62 per share, a year before. Excluding the prior announced third-quarter tax benefit of $0.11 per share due to reversals of state, federal, and foreign tax reserves and allowances, adjusted earnings per share were $0.75 in the period. On average, 29 analysts polled by Thomson Reuters expected earnings per share of $0.74 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net sales climbed 9% year-on-year to $6.98 billion, from $6.41 billion and consolidated comparable-store sales rose 5% over last year's reported 7% increase. Analysts estimated revenues of $6.91 billion for the quarter.

Looking ahead to the fourth quarter, the firm is maintaining its earnings per share guidance in the range of $0.77 - $0.80. This outlook continues to be based on the estimated consolidated comparable store sales growth of 1% - 2%, which reflects six fewer days in the Christmas selling season compared with last year.

For the year ending February 1, 2014, TJX is raising its outlook to reflect its strong third quarter results, now expecting earnings per share to be in the range of $2.91 - $2.94. On an adjusted basis, excluding the $0.11 per share tax benefit in the third quarter, this guidance would be $2.80 - $2.83. Earlier, the company expected to report full-year earnings in a range of $2.89 - $2.93 per share, with adjusted earnings ranging between $2.78 and $2.82 per share.

With TJX's consolidated store count expected to reach around 3,215 stores by fiscal 2014 end, the company's raised store growth estimates represent the potential to expand its store base by nearly 60% with its existing chains in its existing countries alone.