NEW YORK (TheStreet) -- TJX (TJX), the parent company to T.J. Maxx, Marshalls and HomeGoods, shot up more than 3% in post-market trading on Monday after boosting third-quarter and full-year guidance fueled by strong sales and profit margins.
TJX raised its third-quarter earnings guidance to 84 cents or 85 cents a share, up from previous guidance between 69 cents and 72 cents a share. The EPS number includes an 11-cent tax benefit due to reversals of state and foreign tax reserves and allowances that was not figured into its previous guidance. The company earned 62 cents a share in last year's third quarter.
Excluding the tax benefit, the company expects earnings per share of 73 cents to 74 cents, an 18% to 19% increase over the prior year and above Wall Street expectations of 72 cents a share for the October-ending quarter.
The retailer also raised comparable store sales growth to approximately 4% in the quarter, up from the 2% to 3% growth it forecast in August. TJX reported comparable sales of 7% in the third quarter of 2012.
Shares were up 3.3% after market close to $59.50. The company reports earnings on Nov. 19.
The retailer is also raising its full-year earnings per share outlook to a range of $2.89 to $2.93 a share, versus earnings of $2.55 a share last year. On an adjusted basis, the earnings forecast would be $2.78 to $2.82 a share.
TJX maintained its fourth-quarter earnings guidance of 77 cents to 80 cents a share.
The company is hosting an investor day on Tuesday at its headquarters in Framingham, Mass., where it is expected to discuss increased opportunity for its stores in current markets.