BJ's (BJ) Q2 Earnings Report Preview: What To Look For

Membership-only discount retailer BJ’s Wholesale Club (NYSE:BJ) will be announcing earnings results this Friday morning. Here’s what to look for.

BJ's missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $5.15 billion, up 4.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS 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 5.4% year on year to $5.49 billion, in line with the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 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 four 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. Target posted flat year-on-year revenue, beating analysts’ expectations by 1.3%, and Sprouts reported revenues up 17.3%, topping estimates by 2.3%. Sprouts traded down 4.1% following the results.

Read our full analysis of Target’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 up 2.8% during the same time and is heading into earnings with an average analyst price target of $121.11 (compared to the current share price of $107.59).

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