BJ's Wholesale Club Holdings, Inc. (BJ Quick QuoteBJ - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2025 results on May 22, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.18 billion, which indicates an increase of 5.2% from the prior-year reported figure.

The bottom line of this operator of membership warehouse clubs is expected to rise year over year. The Zacks Consensus Estimate for first-quarter earnings per share, which has been stable at 91 cents over the past 30 days, suggests an increase of 7.1% from the year-ago quarter.

BJ's Wholesale has a trailing four-quarter earnings surprise of 12%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 6.9%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

What’s Shaping BJ’s Wholesale’s Upcoming Earnings?

BJ's Wholesale appears well-positioned due to its value-driven model and strategic investments. The company has consistently grown its member base, bolstered by strong renewal rates and upgrades to higher-tier memberships. BJ’s continues to enhance the value proposition for its Plus members through benefits such as fuel discounts and digital conveniences like free same-day delivery. These endeavors have been contributing to signups and renewals. Our model suggests a 7.7% rise in membership fee income for the quarter under review. 

The first 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. BJ’s Fresh 2.0 initiative, aimed at improving produce quality and merchandising, has helped increase member engagement and visit frequency. The company’s efforts to refine assortment and tailor seasonal offerings may have influenced customer basket composition during the quarter. Another driving factor is club expansion and new market penetration. These factors are expected to have contributed to the top line. We expect merchandise comparable club sales to increase 3.7% for the quarter under review.

However, the quarter may also reveal challenges in the form of cautious consumer spending, which continues to pressure discretionary categories. Additionally, potential deleverage in SG&A expenses may weigh on margins. We anticipate a 5.4% year-over-year increase in SG&A expenses for the first quarter. Further, intensifying competition from traditional grocers and warehouse club peers may strain BJ’s pricing power.

What the Zacks Model Predicts About BJ

As investors prepare for BJ’s first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model predicts that an earnings beat is likely 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, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ's Wholesale has an Earnings ESP of +0.77% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

3 More Stocks With the Favorable Combination

Here are three more companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:

Dollar General Corporation (DG Quick QuoteDG - Free Report) currently has an Earnings ESP of +3.67% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $1.48, implying a 10.3% year-over-year decline. 

Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.28 billion, which indicates an increase of 3.7% from the figure reported in the prior-year quarter. DG has a trailing four-quarter earnings surprise of 1.2%, on average.

Five Below (FIVE Quick QuoteFIVE - Free Report) has an Earnings ESP of +4.18% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $961.1 million, which suggests an 18.4% rise from the figure reported in the year-ago quarter. 

The company is expected to register an increase in the bottom line. The consensus estimate for Five Below’s first-quarter earnings is pegged at 80 cents a share, up 33.3% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 40.6%, on average.

Burlington Stores (BURL Quick QuoteBURL - Free Report) has an Earnings ESP of +1.78% and currently carries a Zacks Rank of 3. BURL’s top line is anticipated to advance year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.52 billion, which suggests a 6.9% 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 first-quarter earnings is pegged at $1.40 per share, down 1.4% from the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 17.9%, on average.