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Is a Beat in Store for BJ's Wholesale (BJ) in Q3 Earnings?
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BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) is scheduled to release third-quarter fiscal 2018 results on Nov 20. In the last reported quarter, this Massachusetts-based company reported earnings beat of 14.8%.
How Are Estimates Faring?
The Zacks Consensus Estimate for the quarter under review is 34 cents, while the same for revenues is $3,168 million. We note that the Zacks Consensus Estimate has remained stable in the past 30 days.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
BJ’s Wholesale witnessed decent top-line performance in the last reported quarter, wherein merchandise comparable sales grew for the fourth straight quarter. Further, the company’s private-label brands, namely Wellsley Farms and Berkley Jensen that accounted for more than 20% of net sales in the last quarter, are performing well. The company has a bunch of new and strong private-label products, including a better mix of Wellsley Farms wines and seafood, in the pipeline for the third quarter. Additionally, management is optimistic about its tire business. The company has witnessed robust tire sales year to date.
Moving on, BJ’s Wholesale launched same-day delivery services in the last quarter. This move will now benefit more than 70% of its members by offering them grocery delivery at discounted prices. With this, the company expects to boost growth in the near future.
Also, BJ’s Wholesale is making efforts to enhance omni-channel capabilities to expand customer base. In this regard, the company has been successful in gaining members through digital platform. Further, the company intends to open 15 to 20 new clubs over the next five years.
We note that this Zacks Rank #3 (Hold) has lost 0.1% in a year's time outperforming the industry's decline 3.8%.
Nevertheless, the company is grappling with high SG&A costs, owing to IPO. Also, high interest expenses are a concern. Both the above-mentioned factors may pose a threat to the company’s bottom line in the coming days.
What the Zacks Model Unveils
Our proven model shows that BJ’s Wholesale is likely to beat estimates this quarter as the stock has the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BJ’s Wholesale carries a Zacks Rank #3 and an Earnings ESP of +0.99%, which makes us confident of a beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Target Corporation (TGT - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2.
Ross Stores (ROST - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Is a Beat in Store for BJ's Wholesale (BJ) in Q3 Earnings?
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) is scheduled to release third-quarter fiscal 2018 results on Nov 20. In the last reported quarter, this Massachusetts-based company reported earnings beat of 14.8%.
How Are Estimates Faring?
The Zacks Consensus Estimate for the quarter under review is 34 cents, while the same for revenues is $3,168 million. We note that the Zacks Consensus Estimate has remained stable in the past 30 days.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
BJ’s Wholesale witnessed decent top-line performance in the last reported quarter, wherein merchandise comparable sales grew for the fourth straight quarter. Further, the company’s private-label brands, namely Wellsley Farms and Berkley Jensen that accounted for more than 20% of net sales in the last quarter, are performing well. The company has a bunch of new and strong private-label products, including a better mix of Wellsley Farms wines and seafood, in the pipeline for the third quarter. Additionally, management is optimistic about its tire business. The company has witnessed robust tire sales year to date.
Moving on, BJ’s Wholesale launched same-day delivery services in the last quarter. This move will now benefit more than 70% of its members by offering them grocery delivery at discounted prices. With this, the company expects to boost growth in the near future.
Also, BJ’s Wholesale is making efforts to enhance omni-channel capabilities to expand customer base. In this regard, the company has been successful in gaining members through digital platform. Further, the company intends to open 15 to 20 new clubs over the next five years.
We note that this Zacks Rank #3 (Hold) has lost 0.1% in a year's time outperforming the industry's decline 3.8%.
Nevertheless, the company is grappling with high SG&A costs, owing to IPO. Also, high interest expenses are a concern. Both the above-mentioned factors may pose a threat to the company’s bottom line in the coming days.
What the Zacks Model Unveils
Our proven model shows that BJ’s Wholesale is likely to beat estimates this quarter as the stock has the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
BJ’s Wholesale carries a Zacks Rank #3 and an Earnings ESP of +0.99%, which makes us confident of a beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Macy’s (M - Free Report) has an Earnings ESP of +24.4% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2.
Ross Stores (ROST - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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