TJX Companies Q4 Results Beat View, Plans Dividend Increase

(RTTNews) - Off-price retailer TJX Companies, Inc. (TJX) on Wednesday reported a nearly 2 percent increase in profit for the fourth quarter from last year, reflecting higher sales and customer traffic. Both revenue and earnings per share for the quarter beat analysts' expectations.

Looking ahead, the company forecast earnings for the first quarter and fiscal 2018 below the Street estimates. The company also said it plans to increase the dividend by 20 percent and buy back up to $1.8 billion of stock.

The Framingham, Massachusetts-based company's fourth-quarter net income was $677.93 million or $1.03 per share, up from $666.47 million or $0.99 per share in the prior-year quarter.

On average, 28 analysts polled by Thomson Reuters expected the company to report earnings of $1.00 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 6 percent to $9.47 billion from $8.96 billion in the same quarter last year and beat analysts' consensus revenue estimate of $9.44 billion.

Consolidated comparable store sales for the quarter rose 3 percent, compared to an increase of 6 percent in the same period last year. The increase was driven by strong customer traffic.

Looking ahead to the first quarter of fiscal 2018, TJX Companies forecast earnings in a range of $0.76 to $0.78 per share, compared to $0.76 per share in the year-ago period. The earnings outlook is based upon estimated consolidated comparable store sales growth of 0 percent to 1 percent. Analysts expect the company to earn $0.81 per share for the quarter.

For fiscal 2018, TJX Companies forecast earnings in a range of $3.80 to $3.89 per share, which would represent a 10 percent to 12 percent increase over the $3.46 in fiscal 2017. Excluding a benefit, the company projects adjusted earnings of $3.69 to $3.78 per share.

The full-year outlook is based upon estimated consolidated comparable store sales growth of 1 percent to 2 percent.

The Street is currently looking for full-year earnings of $3.79 per share.

TJX Companies said it intends to increase the regular quarterly dividend on its common stock to be declared in April 2017 and payable in June 2017 to $0.3125 per share, subject to the approval of its board of directors. This would represent a 20 percent increase in the current per share dividend.

The company also plans to repurchase about $1.3 billion to $1.8 billion of TJX stock during the fiscal year ending February 3, 2018.

With $1.8 billion remaining at fiscal 2017 year end under the company's existing stock repurchase program, the company's board approved a new stock repurchase program that authorizes the repurchase of up to an additional $1.0 billion of TJX common stock from time to time.