TJX Cos. (TJX) Tops Q4 EPS by 5c; Approves Stock Buyback Up to $2B

(Updated - February 24, 2016 8:37 AM EST)

TJX Cos. (NYSE: TJX) reported Q4 EPS of $0.99, $0.05 better than the analyst estimate of $0.94. Revenue for the quarter came in at $8.96 billion versus the consensus estimate of $8.73 billion.

Comps rose 6 percent.

Shareholder Distributions

The Company intends to increase the regular quarterly dividend on its common stock to be declared in March 2016 and payable in June 2016 to $.26 per share, subject to the approval of the Company’s Board of Directors. This increase would represent a 24% increase in the current per share dividend and mark the 20th consecutive year that the Company has raised the dividend. Over this period of time, the Company’s dividend has grown at a compound annual rate of 23%.

The Company also announced today its plan to repurchase approximately $1.5 to $2.0 billion of TJX stock during the fiscal year ending January 28, 2017. With $1.5 billion remaining at Fiscal 2016 year end under the Company’s existing stock repurchase program, the Company’s Board of Directors approved a new stock repurchase program that authorizes the repurchase of up to an additional $2.0 billion of TJX common stock from time to time. The new authorization represents approximately 4% of the Company’s outstanding shares at current prices. The new stock repurchase program marks the 17th program approved by the Board since 1997. Over this period, the Company has spent approximately $16.3 billion on the repurchase of TJX stock. During the fourth quarter, the Company spent a total of $510 million to repurchase TJX stock, retiring 7.3 million shares. In Fiscal 2016, the Company spent a total of $1.8 billion to repurchase TJX stock, retiring 26.5 million shares. Under the Company’s repurchase plans, share repurchases may be made from time to time in market or private transactions and may include derivative transactions. The repurchase program announced today has no time limit and may be suspended or discontinued at any time.

GUIDANCE:

TJX Cos. sees Q1 2017 EPS of $0.68-$0.70, versus the consensus of $0.74.

TJX Cos. sees FY2017 EPS of $3.29-$3.38, versus the consensus of $3.61.

Sees Q1 comp sales up 2 - 3 percent and FY16 comps up 1 - 2 percent.

For earnings history and earnings-related data on TJX Cos. (TJX) click here.

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