BJ's (BJ) To Report Earnings Tomorrow: Here Is What To Expect

Membership-only discount retailer BJ’s Wholesale Club (NYSE:BJ) will be announcing earnings results tomorrow before market open. Here’s what to look for.

BJ's met analysts’ revenue expectations last quarter, reporting revenues of $4.92 billion, up 4.1% year on year. It was an ok quarter for the company, with revenue and EPS narrowly exceeding analysts' estimates.

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 3.8% year on year to $5.15 billion, a reversal from the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 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 Q2 results, giving us a hint as to what we can expect. Walmart delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 1.2%, and Sprouts reported revenues up 11.9%, topping estimates by 3.2%. Walmart traded up 7.1% following the results while Sprouts was also up 13.2%.

Read our full analysis of Walmart’s results here and Sprouts’s results here.

Investors in the non-discretionary retail segment have had steady hands going into earnings, with share prices flat over the last month. BJ's is down 5.1% during the same time and is heading into earnings with an average analyst price target of $86.3 (compared to the current share price of $86.48).

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