TJX Cos. (TJX) stock experienced a 1.2% drop in premarket trading on Wednesday following the release of fourth-quarter guidance that fell short of analyst estimates. Despite this, the retailer reported better-than-expected third-quarter profit results.
Third Quarter Highlights
During the third quarter, TJX’s net income increased to $1.19 billion, or $1.03 a share, compared to $1.06 billion, or 91 cents a share, in the same period last year. The company’s adjusted earnings of $1.03 per share also surpassed the FactSet consensus estimate of 99 cents per share and exceeded the company’s own expectations. Additionally, revenue grew by 9% to reach $13.3 billion, outpacing the analyst estimate of $13.1 billion.
Q4 Outlook
Looking ahead, TJX anticipates adjusted profit for the fourth quarter to range between 97 cents and $1 per share, which is lower than the analyst estimate of $1.13 per share. The company also acknowledged an impact of 3 cents per share for the fourth quarter due to the expected reversal of the third-quarter fiscal 2024 benefit resulting from timing-related expenses.
