Uncovering Potential: BJ's Wholesale Club's Earnings Preview

BJ's Wholesale Club BJ is preparing to release its quarterly earnings on Friday, 2025-08-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect BJ's Wholesale Club to report an earnings per share (EPS) of $1.10.

Anticipation surrounds BJ's Wholesale Club's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.23, leading to a 0.44% increase in the share price on the subsequent day.

Here's a look at BJ's Wholesale Club's past performance and the resulting price change:

BJ's Wholesale Club Share Price Analysis

Shares of BJ's Wholesale Club were trading at $107.34 as of August 20. Over the last 52-week period, shares are up 27.67%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on BJ's Wholesale Club

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding BJ's Wholesale Club.

With 10 analyst ratings, BJ's Wholesale Club has a consensus rating of Neutral. The average one-year price target is $116.3, indicating a potential 8.35% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Dollar Tree, Dollar General and Target, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Dollar Tree, with an average 1-year price target of $105.9, suggesting a potential 1.34% downside.
• Analysts currently favor an Neutral trajectory for Dollar General, with an average 1-year price target of $116.79, suggesting a potential 8.8% upside.
• Analysts currently favor an Neutral trajectory for Target, with an average 1-year price target of $105.55, suggesting a potential 1.67% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Dollar Tree, Dollar General and Target are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

BJ's Wholesale Club ranks in the middle among peers for revenue growth. It ranks at the bottom for gross profit. It is at the top for return on equity.

About BJ's Wholesale Club

BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its 250 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ's charges annual membership fees and keeps costs down by operating a "no-frills" store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of 7,000 stock-keeping units at its warehouses to achieve greater procurement scale on select items. About 80% of BJ's net sales come from grocery items and general merchandise, with the remaining 20% stemming from gasoline and other ancillary services.

Key Indicators: BJ's Wholesale Club's Financial Health

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: BJ's Wholesale Club displayed positive results in 3 months. As of 30 April, 2025, the company achieved a solid revenue growth rate of approximately 4.78%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: BJ's Wholesale Club's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.91%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): BJ's Wholesale Club's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.84% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): BJ's Wholesale Club's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.11% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 1.37, BJ's Wholesale Club faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for BJ's Wholesale Club visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.