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BJ's Wholesale (BJ) Q2 Earnings on the Horizon: Drivers 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 second-quarter fiscal 2024 results on Aug 22 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.16 billion, which indicates growth of 3.9% from the prior-year reported figure.
The bottom line of this operator of membership warehouse clubs is expected to have increased year over year. The Zacks Consensus Estimate for second-quarter earnings per share has been stable at 99 cents over the past 30 days. The consensus estimate suggests an increase of 2.1% from the year-ago quarter.
BJ's Wholesale has a trailing four-quarter earnings surprise of 4.5%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 2.4%.
Factors to Consider
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 second 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. These factors are expected to contribute favorably to the company's top-line performance. We expect merchandise comparable club sales to increase 1.5% 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 4.9% year-over-year increase in SG&A expenses for the second quarter, leading to a deleverage of 20 basis points as a percentage of total revenues.
BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise
Our proven model predicts 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 chances of an earnings beat, which is the case here.
BJ's Wholesale has an Earnings ESP of +1.24% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three 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 this season:
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
Burlington Stores (BURL - Free Report) has an Earnings ESP of +5.62% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for BURL’s quarterly earnings has increased a penny in the past 30 days to 93 cents. The consensus mark for earnings indicates a 55% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $2.41 billion, which calls for a rise of 10.9% from the top line reported in the year-ago quarter. BURL delivered a trailing four-quarter average earnings surprise of 21.7%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, which implies growth of 1.4% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s bottom line has been stable at $5.02 per share over the past 30 days. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
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BJ's Wholesale (BJ) Q2 Earnings on the Horizon: Drivers to Note
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2024 results on Aug 22 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.16 billion, which indicates growth of 3.9% from the prior-year reported figure.
The bottom line of this operator of membership warehouse clubs is expected to have increased year over year. The Zacks Consensus Estimate for second-quarter earnings per share has been stable at 99 cents over the past 30 days. The consensus estimate suggests an increase of 2.1% from the year-ago quarter.
BJ's Wholesale has a trailing four-quarter earnings surprise of 4.5%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 2.4%.
Factors to Consider
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 second 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. These factors are expected to contribute favorably to the company's top-line performance. We expect merchandise comparable club sales to increase 1.5% 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 4.9% year-over-year increase in SG&A expenses for the second quarter, leading to a deleverage of 20 basis points as a percentage of total revenues.
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 Unveils
Our proven model predicts 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 chances of an earnings beat, which is the case here.
BJ's Wholesale has an Earnings ESP of +1.24% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three 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 this season:
Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +2.38% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 78 cents implies an increase of 16.4% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ollie's Bargain’s top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $562.4 million, which suggests an increase of 9.3% from the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
Burlington Stores (BURL - Free Report) has an Earnings ESP of +5.62% and a Zacks Rank of 3 at present. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for BURL’s quarterly earnings has increased a penny in the past 30 days to 93 cents. The consensus mark for earnings indicates a 55% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $2.41 billion, which calls for a rise of 10.9% from the top line reported in the year-ago quarter. BURL delivered a trailing four-quarter average earnings surprise of 21.7%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.89% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $80.1 billion, which implies growth of 1.4% from the year-ago quarter’s reported figure.
The consensus estimate for Costco’s bottom line has been stable at $5.02 per share over the past 30 days. The consensus mark for earnings suggests growth of 3.3% from the year-ago quarter’s reported figure. COST delivered an earnings beat of 2.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.