HomeMost PopularInvestingThe Path Ahead: Anticipating BJ's Wholesale (BJ) Fourth Quarter Earnings Report

The Path Ahead: Anticipating BJ’s Wholesale (BJ) Fourth Quarter Earnings Report

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BJโ€™s Wholesale Club Holdings, Inc. BJ is anticipated to unveil a surge in revenue as it unveils its fourth-quarter fiscal 2023 results on March 7 before the market opens. Analystsโ€™ consensus stands at $5,396 million, signaling a hearty 9.5% growth from the previous year.

The bottom line for this provider of membership warehouse clubs is projected to show a yearly increase. Over the last 30 days, the Zacks Consensus Estimate for fourth-quarter earnings per share has held steady at $1.06. Such forecasts represent a respectable uptick of 6% from the corresponding period last year.

BJโ€™s Wholesale has maintained a consistent pattern of surprising earnings over the last four quarters, with an average deviation of 6.1%. In the most recent quarter, the company outperformed the Zacks Consensus Estimate by a notable margin of 3.2%.

Driving Forces at Play

BJโ€™s Wholesale has been dedicated to streamlining its product offerings, enhancing marketing and merchandising capabilities, venturing into high-demand segments, and cultivating its portfolio of proprietary brands. The companyโ€™s unwavering commitment to enriching omnichannel capabilities, expediting the launch of new clubs, and delivering value to customers has been a productive endeavor. These initiatives have fostered a growth in membership enrollments and renewals.

The fourth quarter is poised to reflect the favorable outcomes of BJโ€™s Wholesaleโ€™s strategic focus on competitive pricing, exclusive in-house products, merchandising innovations, and digital advancements. These factors are expected to have a positive impact on the companyโ€™s top-line performance. The ongoing transformation of BJโ€™s Wholesaleโ€™s general merchandise division, with enhancements in assortment variety and pricing strategies, has delivered promising outcomes.

Nonetheless, the upcoming quarter may present challenges, notably in the form of potential adverse effects from SG&A expense deleverage, which could impinge on margins. Additionally, prevailing disinflationary forces, cautious consumer spending habits, and reduced government aid may pose threats to BJโ€™s Wholesale performance.

A Glimpse into the Zacks Model

The Zacks model doesnโ€™t definitively forecast an earnings beat for BJโ€™s Wholesale this time around. While a blend of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually heightens the likelihood of an earnings surprise, this is not the case presently.

With a Zacks Rank #3 but an Earnings ESP of 0.00%, BJโ€™s Wholesale falls outside the conventional parameters for an earnings beat. For investors keen on staying ahead, itโ€™s crucial to stay informed about the Earnings ESP Filter.

Companies with a Winning Hand

Here are some companies worth considering, given our modelโ€™s indication that they possess the right mix to exceed earnings expectations:

Costco COST currently boasts an Earnings ESP of +1.58% and carries a Zacks Rank #2. Projections for second-quarter fiscal 2024 earnings per share stand at $3.60, reflecting a 9.1% uptick year over year.

Costcoโ€™s revenue is set to climb year over year, with estimates forecasting $59.2 billion in quarterly revenues, up 7.1% from the previous year. On average, COST has outperformed earnings estimates by 2.6% over the trailing four quarters.

Engage with the upcoming earnings schedule on the Zacks website.

Statement from Zacks:

From five experts at Zacks, each has picked a stock they believe could surge over 100% in the months ahead. Director of Research Sheraz Mian has identified a relatively unknown chemical company with a 65% rise over the past year; however, it still remains attractively priced, with increasing 2022 earnings projections and significant capital for share repurchases.

These selections are on par with other recent Zacks-expedited stock surges, such as Boston Beer Company, spiking +143.0% in slightly over 9 months, and NVIDIA, skyrocketing +175.9% over a year.

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