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Key Factors Shaping BJ's Wholesale's (BJ) Earnings in Q4

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Investors are keeping their fingers crossed over the outcome of BJ’s Wholesale Club Holdings, Inc.’s (BJ - Free Report) fourth-quarter fiscal 2018 results. This operator of warehouse clubs has delivered positive earnings surprises in the preceding two quarters. Let’s see how things are shaping up for this announcement.

The Zacks Consensus Estimate for earnings is pegged at 36 cents for the fourth quarter, showing a sequential decline of 3 cents. Moreover, the Zacks Consensus Estimate for revenues currently stands at $3,442 million, which shows a sequential improvement of 6.8%. Let’s see how things are shaping up for this announcement.

Factors to Consider

BJ’s Wholesale’s decent comparable sales (comps) performance have been aiding the top line. Notably, the company witnessed its fourth straight quarter of merchandise comps improvement during the third quarter. Management expects fourth-quarter comps to fare better than the preceding quarter. The company had earlier guided fiscal 2019 comps to be 1.9-2.1%.

Better price management and strong membership trends have been working in favor of  BJ’s Wholesale. Moving ahead, BJ’s Wholesale expects to achieve new highs in renewal and new membership rates, as . the company is undertaking strategies in the digital space to attract new members. Also, the company intends to open at least 4 new clubs in fiscal 2019.

Apart from this, the company offers Buy Online Pick Up In Club, Same Day Grocery Delivery and Next Day Tire Installation services along with digital coupons to its customers. Additionally, BJ’s Wholesale is on track to add new features to its app to enhance customers' shopping experience. The company recently introduced a reorder feature, through which customers can order products from their purchase history. Also, the mobile app now comes with same-day delivery service option. We hope such well-chalked efforts to drive traffic and boost top-line growth.

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

What the Zacks Model Unveils

Our proven model doesn’t show that BJ’s Wholesale is likely to beat estimates this quarter as the stock doesn’t have the right combination of two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although BJ’s Wholesale carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

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

Zumiez, Inc. (ZUMZ - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Kroger Co. (KR - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank #2

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #3.

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