You save money while we make money, TJ MAXX (NYSE: TJX) stock is higher on reported strong earnings beat and raised outlook

TJX Companies Inc. (NYSE: TJX) reported first-quarter results that exceeded analyst expectations, driving shares up 3.7% premarket as the off-price retailer raised its full-year outlook on strong sales momentum and margin expansion.

The company posted adjusted earnings per share of $1.19, beating the analyst consensus of $1.02 by $0.17. Revenue reached $14.3 billion, surpassing estimates of $14 billion and marking a 9% increase from $13.1 billion in the same quarter last year. Comparable sales rose 6%, well above the company’s plan, with all divisions delivering growth and increased customer transactions.

Pretax profit margin reached 12.0%, up 1.7 percentage points YoY and significantly above plan, driven by higher merchandise margins, favorable inventory and fuel hedges, and expense leverage.

The strong performance prompted TJX to raise its full-year comparable sales growth outlook to 3% to 4%, up from previous guidance, and increase its earnings per share forecast to a range of $5.08 to $5.15 versus the consensus of $5.11. The midpoint of $5.12 slightly exceeds analyst expectations.

“I am extremely pleased with our first quarter performance,” said Ernie Herrman, Chief Executive Officer and President. “Sales, pretax profit margin, and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers, every day.”