NEW YORK (TheStreet) -- Shares of TJX Cos. (TJX) - Get TJX Companies Inc Report are up 3.65% to $69.61 in afternoon trading Wednesday, following the discount apparel retailer's better than expected fourth quarter earnings results.
The company reported earnings of $648.2 million, or 93 cents per share for the quarter, beating the 90 cents per share analysts had expected.
Fourth quarter revenue was up 6.3% year over year to $8.3 billion, also higher compared to the $8.26 billion consensus estimate. TJX Cos. also said same-store sales increased 4% from last year.
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The retailer forecast first quarter and full-year profit below analysts' expectations, citing a strong dollar and wage hikes.
For the first quarter, TJX forecast a profit in a range of between 64 cents to 66 cents per share, lower than the 72 cents analysts are expecting. For the full year, the company sees a profit of between $3.17 to $3.25 per share, also lower than the $3.50 analysts are expecting.
TJX also announced that it would raise wages for its workers in the U.S. to a minimum of $9 per hour from June. The move matches Walmart Stores' (WMT) - Get Walmart Inc. Report wage hike that was announced last week.
TJX also said it would buy back up to $1.8 billion to $1.9 billion of shares this fiscal year.
Separately, TheStreet Ratings team rates TJX COMPANIES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TJX COMPANIES INC (TJX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: TJX Ratings Report