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BJ'S Wholesale (BJ) Beats on Q2 Earnings & Sales Estimates

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BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) delivered second-quarter fiscal 2018 results, wherein both the top and bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year. Management also provided initial view for fiscal 2018.

The operator of membership warehouse clubs reported adjusted earnings of 31 cents a share that beat the Zacks Consensus Estimate of 27 cents and increased significantly from 22 cents reported in the year-ago period. This Westborough, MA-based company generated total revenue of $3,307.1 million that came ahead of the consensus mark of $3,276 million, and grew 4.4% year over year.

Notably, net sales jumped 4.3% to $3,236.7 million, while membership fee income advanced 9.7% to $70.4 million.

Comparable sales rose 5% during the quarter under review. Excluding the impact of gasoline sales, merchandise comparable sales increased 2%, marking the fourth straight quarter of growth.

Gross profit came in at $588.5 million, up 6.4% from the year-ago period, while gross margin expanded 30 basis points to 17.8%. Adjusted EBITDA jumped 5.4% to $143 million, while adjusted EBITDA margin remained flat at 4.3%.

BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise

 

BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise | BJ's Wholesale Club Holdings, Inc. Quote

Other Financial Details

BJ's Wholesale Club, which carries a Zacks Rank #3 (Hold), ended the quarter with cash and cash equivalents of $31.3 million, long-term debt of $1,894.1 million, and stockholders' deficit of $317.9 million. Management projects capital expenditures in the band of $160-$170 million.

FY18 Outlook

Management now forecasts fiscal 2018 net sales in the range of $12.6-$12.7 billion with merchandise comparable store sales (excluding gasoline) expected to come in the band of 1.8-2.1%. Adjusted EBITDA is projected to be between $553 million and $563 million.

The company now envisions adjusted earnings in the range of $1.17-$1.24 per share for the fiscal year. The Zacks Consensus Estimate for the full year is pegged at $1.14.

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