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Dynamic Dividend
Dynamic Dividend
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Retail Earnings Roundup: Home Depot, TJX, Walmart

May 17, 2011 | About:

A trio of important dividend-paying retailers reported their first quarter results before today’s opening bell. Here’s a look at what they reported, and how the market is reacting to the figures.

The Home Depot (NYSE:HD) reported first quarter earnings of $0.50 per share on $16.82 billion in revenue, edging the consensus view for profit ($0.49 per share) while falling short of the average sales estimate ($17.02 billion). The company raised its full-year guidance as well. Home Depot now expects to earn $2.24 per share (minus the impact of future share repurchases) on 2.5% sales growth, while the average analyst forecast currently calls for a profit of $2.31 per share on 2.6% sales growth. Shares of HD opened up slightly at $37.37 (+1.05%), where they yield 2.68%.

The TJX Companies (NYSE:TJX) posted adjusted first quarter earnings of $0.78 on $5.22 billion in revenue, falling short of the average profit view ($0.80 per share) while edging the consensus sales estimate ($5.18 billion). Looking ahead, the company expects to earn an adjusted $3.81 to $3.93 per share for the year, bracketing the average analyst estimate of $3.88 per share. Shares of TJX opened today’s session trading lower at $52.75 (-2.87%), where they feature a 1.44% dividend yield.

Wal-Mart Stores (NYSE:WMT) reported first quarter earnings of $0.97 per share on $103.41 billion in revenue, topping the consensus views for both profit ($0.95 per share) and sales ($103.0 billion). The company expects to earn $1.05 to $1.10 per share during the current quarter, in line with average analyst estimate of $1.08 per share. Shares of WMT opened the day trading at $55.52 (-0.96%), where they carry a 2.63% dividend yield.

Each of these companies has raised its payout within the last few months: Home Depot raised its dividend by 5.8% in February, Wal-Mart pushed its payout higher by 21% in March, and TJX gave shareholders a 27% raise in April.

The moves were unsurprising given their strong dividend growth histories. Wal-Mart has raised its dividend every year since 1975, qualifying it as a Class C Dividend Dynamo, while TJX has a streak going back to 1997 that gives it Class E Dividend Dynamo status. Home Depot doesn’t currently have a long streak in place, but the company has increased its dividend in 22 of the last 24 years.

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