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BJ's Wholesale Club's Earnings: A Preview

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On Thursday, March 04, BJ's Wholesale Club (NYSE:BJ) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

BJ's Wholesale Club EPS is expected to be around $0.67, according to sell-side analysts. Sales will likely be near $3.94 billion. BJ's Wholesale Club reported a profit of $0.4 per share when it published results during the same quarter last year. Sales in that period totaled $3.47 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 67.5%. Sales would be up 13.48% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.64 0.60 0.34 0.4
EPS Actual 0.92 0.77 0.69 0.4
Revenue Estimate 3.68 B 3.74 B 3.31 B 3.47 B
Revenue Actual 3.73 B 3.95 B 3.80 B 3.47 B

Stock Performance

Shares of BJ's Wholesale Club were trading at $38.82 as of March 02. Over the last 52-week period, shares are up 65.92%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. BJ's Wholesale Club is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings