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BJ's Wholesale Q3 Earnings on the Deck: Key Factors to Note
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BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2024 results on Nov. 21 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.13 billion, which indicates growth of 6.4% from the prior-year reported figure.
The bottom line of this operator of membership warehouse clubs is expected to decrease year over year. Although the Zacks Consensus Estimate for third-quarter earnings per share has risen by a couple of cents to 91 cents over the past seven days, it still suggests a decline of 7.1% from the year-ago quarter.
BJ's Wholesale has a trailing four-quarter earnings surprise of 4.8%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 9%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
BJ's Wholesale’s focus on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories and building an own-brand portfolio is commendable. The company remains committed to enhancing omnichannel capabilities, expediting the opening of new clubs and providing value for customers. These endeavors have been contributing to growth in membership signups and renewals.
The third quarter is anticipated to reflect the positive impact of BJ's Wholesale's emphasis on better pricing, private-label offerings, merchandise initiatives and digital solutions. The company has been actively expanding its membership base, focusing on attracting and retaining loyal customers through enhanced offerings and upgraded memberships. These factors are expected to have contributed favorably to the top line. We expect merchandise comparable club sales to increase by 2% for the quarter under review.
However, the quarter may also reveal challenges, particularly in the form of potential deleverage in SG&A expenses, which could adversely affect margins. We anticipate a 7.5% year-over-year increase in SG&A expenses for the third quarter, leading to a deleverage of 40 basis points as a percentage of total revenues. As a result, we foresee an operating margin contraction of 50 basis points.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
As investors prepare for BJ’s third-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for BJ's Wholesale this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
BJ's Wholesale currently carries a Zacks Rank #3 but has an Earnings ESP of -4.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Target (TGT - Free Report) has an Earnings ESP of +1.21% and currently carries a Zacks Rank of 2. TGT’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.9 billion, which suggests a 2.1% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register an increase in the bottom line. The consensus estimate for Target’s third-quarter earnings is pegged at $2.29 per share, up 9.1% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 20.3%, on average.
Walmart (WMT - Free Report) currently has an Earnings ESP of +1.44% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 53 cents implies a rise of 3.9% from the year-ago reported number.
Walmart’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $167.5 billion, which suggests an increase of 4.2% from the prior-year quarter. WMT has a trailing four-quarter earnings surprise of 6.9%, on average.
Five Below (FIVE - Free Report) has an Earnings ESP of +19.73% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $799.2 million, which suggests an 8.5% rise from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for Five Below’s third-quarter earnings is pegged at 16 cents a share, down 38.5% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 1.6%, on average.
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BJ's Wholesale Q3 Earnings on the Deck: Key Factors to Note
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2024 results on Nov. 21 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.13 billion, which indicates growth of 6.4% from the prior-year reported figure.
The bottom line of this operator of membership warehouse clubs is expected to decrease year over year. Although the Zacks Consensus Estimate for third-quarter earnings per share has risen by a couple of cents to 91 cents over the past seven days, it still suggests a decline of 7.1% from the year-ago quarter.
BJ's Wholesale has a trailing four-quarter earnings surprise of 4.8%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 9%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
What’s Shaping BJ’s Wholesale’s Upcoming Earnings?
BJ's Wholesale’s focus on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories and building an own-brand portfolio is commendable. The company remains committed to enhancing omnichannel capabilities, expediting the opening of new clubs and providing value for customers. These endeavors have been contributing to growth in membership signups and renewals.
The third quarter is anticipated to reflect the positive impact of BJ's Wholesale's emphasis on better pricing, private-label offerings, merchandise initiatives and digital solutions. The company has been actively expanding its membership base, focusing on attracting and retaining loyal customers through enhanced offerings and upgraded memberships. These factors are expected to have contributed favorably to the top line. We expect merchandise comparable club sales to increase by 2% for the quarter under review.
However, the quarter may also reveal challenges, particularly in the form of potential deleverage in SG&A expenses, which could adversely affect margins. We anticipate a 7.5% year-over-year increase in SG&A expenses for the third quarter, leading to a deleverage of 40 basis points as a percentage of total revenues. As a result, we foresee an operating margin contraction of 50 basis points.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
BJ's Wholesale Club Holdings, Inc. price-consensus-eps-surprise-chart | BJ's Wholesale Club Holdings, Inc. Quote
What the Zacks Model Predicts About BJ
As investors prepare for BJ’s third-quarter announcement, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for BJ's Wholesale this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
BJ's Wholesale currently carries a Zacks Rank #3 but has an Earnings ESP of -4.47%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Target (TGT - Free Report) has an Earnings ESP of +1.21% and currently carries a Zacks Rank of 2. TGT’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.9 billion, which suggests a 2.1% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register an increase in the bottom line. The consensus estimate for Target’s third-quarter earnings is pegged at $2.29 per share, up 9.1% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 20.3%, on average.
Walmart (WMT - Free Report) currently has an Earnings ESP of +1.44% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 53 cents implies a rise of 3.9% from the year-ago reported number.
Walmart’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $167.5 billion, which suggests an increase of 4.2% from the prior-year quarter. WMT has a trailing four-quarter earnings surprise of 6.9%, on average.
Five Below (FIVE - Free Report) has an Earnings ESP of +19.73% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $799.2 million, which suggests an 8.5% rise from the figure reported in the year-ago quarter.
The company is expected to register a decline in the bottom line. The consensus estimate for Five Below’s third-quarter earnings is pegged at 16 cents a share, down 38.5% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 1.6%, on average.