HomeMost PopularBJ's Wholesale Club (BJ) Beats Q1 Earnings and Revenue Estimates

BJ's Wholesale Club (BJ) Beats Q1 Earnings and Revenue Estimates

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BJโ€™s Wholesale Club (BJ) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.41%. A quarter ago, it was expected that this wholesale membership warehouse operator would post earnings of $1.06 per share when it actually produced earnings of $1.11, delivering a surprise of 4.72%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

BJโ€™s, which belongs to the Zacks Consumer Services โ€“ Miscellaneous industry, posted revenues of $4.92 billion for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 0.76%. This compares to year-ago revenues of $4.72 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stockโ€™s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on managementโ€™s commentary on the earnings call.

BJโ€™s shares have added about 20.8% since the beginning of the year versus the S&P 500โ€™s gain of 11.3%.

Whatโ€™s Next for BJโ€™s?

While BJโ€™s has outperformed the market so far this year, the question that comes to investorsโ€™ minds is: whatโ€™s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the companyโ€™s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for BJโ€™s: mixed. While the magnitude and direction of estimate revisions could change following the companyโ€™s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of todayโ€™s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.99 on $5.18 billion in revenues for the coming quarter and $3.90 on $20.63 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Services โ€“ Miscellaneous is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Academy Sports and Outdoors, Inc. (ASO), another stock in the broader Zacks Consumer Discretionary sector, has yet to report results for the quarter ended April 2024.

This company is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of -3.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Academy Sports and Outdoors, Inc.โ€™s revenues are expected to be $1.37 billion, down 0.7% from the year-ago quarter.

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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks arenโ€™t winners but this one could far surpass earlier Zacksโ€™ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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