BJ's Wholesale Club (BJ) to Post Q1 Earnings: Factors to Note

BJ's Wholesale Club Holdings, Inc. BJ is likely to register an increase in the top line when it reports first-quarter fiscal 2022 results on May 19, before market open. The Zacks Consensus Estimate for revenues is pegged at $4,186 million, indicating growth of 8.2% from the prior-year reported figure.

The bottom line of this operator of membership warehouse clubs is anticipated to remain flat year over year at 72 cents. The consensus estimate has risen by a penny over the past seven days. The company has a trailing four-quarter earnings surprise of 17.9%, on average. In the last reported quarter, this Westborough-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 6.7%.

Factors to Note

BJ's Wholesale’s focus on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories and building an own-brands portfolio is commendable. The company remains committed to enhancing omni-channel capabilities and providing value to customers. These endeavors have been contributing to growth in membership signups and renewals.

The company has been directing resources toward expanding digital capabilities to better engage with members and provide them a convenient way to shop, including same-day delivery, curbside pick-up, and buy-online, pickup-in-club. Management believes that digitally engaged members have higher average baskets and make more trips per year than members who shop in-club only.

Evidently, BJ's Wholesale’s better pricing, private label offerings, merchandise initiatives and digital solutions are likely to have favorably impacted the to-be-reported quarter’s performance. However, margins remain an area to watch. Rising cost pressure amid logistic bottlenecks, and tight labor market and material shortages might have weighed on margins.

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

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 Club this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BJ's Wholesale Club has an Earnings ESP of +5.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

3 More Stocks With Favorable Combination

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

Costco COST currently has an Earnings ESP of +1.90% and a Zacks Rank #2. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.04 suggests an increase of 10.6% from the year-ago quarter’s reported figure.

Costco's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.76 billion, which indicates an improvement of 14.3% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 13.3%, on average.

Ross Stores ROST currently has an Earnings ESP of +1.24% and a Zacks Rank #2. The company is likely to register a bottom-line decline when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 99 cents suggests a decline from $1.34 reported in the year-ago quarter.

Ross Stores’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.54 billion, which indicates a marginal improvement of 0.5% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 33.3%, on average.

Casey's General Stores CASY currently has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.48 suggests an increase of 32.1% from the year-ago reported number.

Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.34 billion, which suggests an increase of 40.4% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.

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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Ross Stores, Inc. (ROST) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

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