BJ's Wholesale Club Analysts Raise Their Forecasts After Upbeat Results

BJ’s Wholesale Club Holdings, Inc. BJ reported better-than-expected results for its first quarter on Thursday.

The company posted quarterly revenue growth of 4.1% year-on-year to $4.918 billion, beating the analyst consensus estimate of $4.831 billion. Total comparable club sales increased by 1.6%. Adjusted EPS of 85 cents beat the analyst consensus estimate of 83 cents, according to data from Benzinga Pro.

Gross profit rose 0.4% Y/Y to $883.4 million. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by 50 basis points Y/Y.

"During the first quarter, we delivered strong increases in membership, traffic and unit volumes. This resulted in revenue growth and market share gains in our clubs and at our gas stations," said Chairman and CEO Bob Eddy.

BJ's Wholesale expects FY24 EPS of $3.75-$4.00 versus the consensus of $3.92. BJ expects FY24 comparable club sales growth, excluding the impact of gasoline sales, to grow 1% – 2% Y/Y.

The company expects merchandise gross margins to improve by 20 basis points year-over-year and a capital expenditure of about $500 million.

BJ's Wholesale shares gained 3.4% to close at $83.20 on Thursday.

These analysts made changes to their price targets on BJ's Wholesale after the company reported quarterly results.

• B of A Securities boosted the price target on BJ's Wholesale from $90 to $95. B of A Securities analyst Robert Ohmes maintained a Buy rating.
• Baird increased BJ's Wholesale price target from $90 to $95. Baird analyst Peter Benedict maintained an Outperform rating.

Read More: Top 3 Health Care Stocks That May Crash In May