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Summary

  • TJX has released its quarterly results for Q2, announcing consolidated comparable store sales up 3%, thanks to great performance in TJX Europe and HomeGoods.
  • The company has increased its full year guidance, now expects diluted EPS in the range of $3.08 to $3.16.
  • The company has continued boosting EPS through share repurchases, as I expected, with $440 million worth of shares bought back in Q2.
  • However, at 18.2 - 18.7 times expected earnings, I still won't be buying.

Shares in TJX Companies (NYSE:TJX) are up 6.67% today, at $57.61, after the company released its Q2 earnings results. Net sales for the quarter were $6.9 billion, 7% higher than in the same quarter last year. Adjusted diluted earnings per share were up 14%, to $0.75.

Consolidated comparable store sales have risen by 3%, thanks to great results for TJX Europe and HomeGoods. In the 2nd quarter, the number of stores increased by 23, to 3,279.

The company has increased its EPS guidance for the third quarter, and now expects diluted EPS to be in the range of $0.81 -$0.85. For the full year, TJX now expects diluted EPS to be between $3.08 and $3.16.

In my most recent article on TJX, I said it was a bit too expensive for me at current prices. It is now trading 8% higher, and despite the higher EPS guidance, I still believe shares in the company to be overvalued. The current price per share is between 18.2 and 18.7 times expected earnings, which is very expensive considering the fact the 5 year average p/e ratio stands at only 17.2. I will, however, keep TJX on my watch list, and may reconsider if the stock drops down to more reasonable levels.

Source: Update: TJX Companies Releases Q2 2015 Results

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