TJX Q2 Profit Increases; Raises FY15 Adj. EPS View - Quick Facts

(RTTNews) - Off-price retailer TJX Companies Inc. (TJX) reported that its second-quarter net income rose to $517.62 million from last year's $479.56 million, with earnings per share improving to $0.73 from $0.66 in the year ago quarter.

Excluding a debt extinguishment charge of $0.02 per share, adjusted earnings per share were $0.75, a 14% increase over the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew to $6.92 billion from $6.44 billion in the previous year. Wall Street expected revenues of $6.88 billion. Consolidated comparable store sales increased 3% over last year's reported 4% increase.

For the third quarter of Fiscal 2015, the Company expects earnings per share to be in the range of $0.81 to $0.85 compared to $.86 per share last year. Excluding the $0.11 per share tax benefit in the third quarter of Fiscal 2014, this would represent an 8% to 13% increase over last year's adjusted $0.75 per share. This outlook is based upon estimated consolidated comparable store sales growth of 1% to 2%. Analysts expect the company to report earnings of $0.85 per share and revenues of $7.43 billion for the third-quarter.

The Company raised its guidance for adjusted earnings per share for fiscal 2015. On a reported basis, for the fiscal year ending January 31, 2015, the company expects earnings per share to be in the range of $3.08 to $3.16 versus $2.94 in Fiscal 2014. On an adjusted basis, excluding the second quarter debt extinguishment charge of an estimated $0.02 per share, this guidance would be $3.10 to $3.18. Analysts project annual earnings per share of $3.14.

This adjusted earnings per share guidance would represent a 10% to 12% increase over the prior year's adjusted earnings per share of $2.83, which excludes the $0.11 per share tax benefit. Further, this outlook is based upon estimated consolidated comparable store sales growth of 1% to 2%.

The Company's earnings guidance for the third quarter and full year Fiscal 2015 assumes that currency exchange rates will remain unchanged from the levels at the end of the quarter.

The company said in May that it expected earnings per share for fiscal 2015 to be in the range of $3.05 to $3.17. Excluding an $0.11 tax benefit in fiscal 2014, this guidance would represented an 8 to 12 percent increase over the adjusted $2.83 in fiscal 2014.