Membership-only discount retailer BJ’s Wholesale Club (NYSE: BJ) will be reporting results tomorrow before market hours. Here’s what to look for.
BJ's met analysts’ revenue expectations last quarter, reporting revenues of $5.28 billion, down 1.5% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
Is BJ's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting BJ’s revenue to grow 5.4% year on year to $5.18 billion, improving from the 4.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BJ's has missed Wall Street’s revenue estimates four times over the last two years.
Looking at BJ’s peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 2.5%, meeting analysts’ expectations, and Sprouts reported revenues up 18.7%, topping estimates by 1.4%. Walmart traded up 1.5% following the results while Sprouts’s stock price was unchanged.
Read our full analysis of Walmart’s results here and Sprouts’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 16.7% on average over the last month. BJ's is up 3.6% during the same time and is heading into earnings with an average analyst price target of $116.06 (compared to the current share price of $119.24).
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