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BJ's Wholesale Club (BJ) to Post Q3 Earnings: What to Expect

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BJ's Wholesale Club Holdings, Inc. BJ is likely to register a decline in the bottom line when it reports third-quarter fiscal 2021 results on Nov 18, before the market opens. Although the Zacks Consensus Estimate for earnings per share for the quarter has increased 3.8% to 81 cents over the past seven days, the figure still suggests a decline from 92 cents reported in the year-ago quarter.

This operator of membership warehouse clubs has a trailing four-quarter earnings surprise of 25.6%, on average. In the last reported quarter, this Westborough-based company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin of 26.2%.

The Zacks Consensus Estimate for revenues is pegged at $3,923 million, indicating an improvement of 5.1% from the prior-year reported figure.

Factors to Note

BJ's Wholesale’s focus on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories and building own-brands portfolio is commendable. The company remains committed toward 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 also directing resources toward expanding digital capabilities in order 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.

Clearly, 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.

Well, margins still remain an area to watch. Inflation as well as freight costs, along with meaningful investments in labor and incremental COVID related safety and sanitation expenses might have weighed on margins. Supply chain and sourcing challenges are likely to have impacted quarterly performance.

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 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ's Wholesale Club has a Zacks Rank #2 and an Earnings ESP of +10.89%.

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:

Macy's M currently has an Earnings ESP of +9.77% and a Zacks Rank #2. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 19.2% in the last seven days to 31 cents per share, suggesting a substantial improvement from a loss of 19 cents a share reported in the year-ago quarter.

Macy's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.29 billion, which indicates an improvement of 32.6% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.

Costco COST currently has an Earnings ESP of +1.00% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings of $2.59 per share suggests growth of 13.1% from the year-ago quarter’s reported figure

Costco’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $49.6 billion, indicating an increase of 14.8% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average

Lowe's LOW currently has an Earnings ESP of +5.71% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.2% in the last seven days to $2.32 per share, suggesting a 17.2% increase from the year-ago reported number.

However, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.83 billion, which suggests a decline of 2.1% from the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.


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