1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dynamic Dividend
Dynamic Dividend
Articles 

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.

About the author:

Dynamic Dividend
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.4/5 (5 votes)

Comments

Please leave your comment:


GuruFocus Mobile App Available


Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK