Analyst Estimates: Here's What Brokers Think Of The TJX Companies, Inc. (NYSE:TJX) After Its Second-Quarter Report

The TJX Companies, Inc. (NYSE:TJX) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$117 in the week after its latest quarterly results. TJX Companies reported US$13b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.96 beat expectations, being 3.9% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for TJX Companies

Taking into account the latest results, TJX Companies' 23 analysts currently expect revenues in 2025 to be US$56.2b, approximately in line with the last 12 months. Statutory per share are forecast to be US$4.17, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$56.3b and earnings per share (EPS) of US$4.18 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$128, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic TJX Companies analyst has a price target of US$148 per share, while the most pessimistic values it at US$81.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that TJX Companies' revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 9.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that TJX Companies is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TJX Companies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for TJX Companies going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - TJX Companies has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.