Stifel Affirms TJX Cos. (TJX) at 'Buy' Following Q1 Report; Q2 Guidance Hiccup Doesn't Offset Favorable L-T Outlook

Stifel is offering a quick look at The TJX Companies, Inc. (TJX) following the company's Q1 report earlier Tuesday.

Analyst Richard Jaffe noted that TJX's Q1 EPS was 3 cents above the firm's EPS estimate. Solid results as positive customer response to the company’s great values, compelling brand and powerful marketing drove sales (comp sales increased 5 percent versus +1 percent LY) and earnings, the analyst said.

Long-term investments and currency headwinds hampered the retailer's Q2 outlook. Jaffe noted, Management established 2Q $0.72 - $0.74 vs. consensus of $0.78 and our estimate of $0.77, which is under review. It is important to note that management’s 2Q guidance includes a 9 percent negative impact on EPS growth ($0.07/share) due to the combination of foreign currency, transactional foreign exchange, investments in employees (higher wages), incremental investments to support growth, and pension costs. Comps are expected to increase 2 - 3 percent.

Jaffe reaffirms TJX with a Buy rating and $78 price target on a favorable long-term outlook and expectations that the company will also be able to grow its business internationally.

For an analyst ratings summary and ratings history on The TJX Companies click here. For more ratings news on The TJX Companies click here.

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