BJ's (BJ) Reports Earnings Tomorrow: What To Expect

Membership-only discount retailer BJ’s Wholesale Club (NYSE:BJ) will be reporting earnings tomorrow before market open. Here's what investors should know.

BJ's met analysts' revenue expectations last quarter, reporting revenues of $5.36 billion, up 8.7% year on year. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year.

Is BJ's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting BJ's revenue to grow 3.2% year on year to $4.87 billion, slowing from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BJ's has missed Wall Street's revenue estimates three times over the last two years.

Looking at BJ's peers in the non-discretionary retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 6%, beating analysts' expectations by 2.1%, and Grocery Outlet reported revenues up 7.4%, topping estimates by 1.4%. Walmart traded up 8.1% following the results while Grocery Outlet was down 19.5%.

Read our full analysis of Walmart's results here and Grocery Outlet's results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 5.2% on average over the last month. BJ's is up 7.4% during the same time and is heading into earnings with an average analyst price target of $82.2 (compared to the current share price of $80.47).

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