Earnings Preview: BJ's Wholesale Club (BJ) Q3 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in BJ's Wholesale Club's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - BJ's is expected to report quarterly earnings of $1.10 per share, reflecting a year-over-year decrease of 6.8% [3]. - Revenue is projected to be $5.35 billion, which is a 5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for BJ's is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.34%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but it is more reliable for positive readings [9][10]. - BJ's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, BJ's exceeded the expected earnings of $1.10 per share by delivering $1.14, resulting in a surprise of +3.64% [13]. - Over the past four quarters, BJ's has consistently beaten consensus EPS estimates [14]. Industry Context - In the Zacks Consumer Products - Staples industry, Energizer Holdings is expected to report earnings of $1.12 per share, reflecting a year-over-year decline of 8.2% [18]. - Energizer's revenue is anticipated to be $831.03 million, a 3.1% increase from the previous year [18]. - The consensus EPS estimate for Energizer has been revised down by 1.7% over the last 30 days, resulting in an Earnings ESP of -0.22% and a Zacks Rank of 4, indicating challenges in predicting an earnings beat [19].