Membership-only discount retailer BJ’s Wholesale Club (NYSE: BJ) will be reporting earnings this Friday before market open. Here’s what to look for.
BJ's beat analysts’ revenue expectations last quarter, reporting revenues of $5.66 billion, up 9.9% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ EBITDA estimates.
Is BJ's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting BJ’s revenue to grow 10.6% year on year, improving from the 3.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. BJ's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at BJ’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Target delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 1.5%, and Grocery Outlet reported revenues up 1.1%, topping estimates by 2.1%. Grocery Outlet traded up 6.2% following the results.
Read our full analysis of Target’s results here and Grocery Outlet’s results here.
There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 3.7% on average over the last month. BJ’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $102.95 (compared to the current share price of $92.46).
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