Key Factors to Watch Ahead of BJ's Wholesale Q4 Earnings Report

BJ's Wholesale Club Holdings, Inc. BJ is likely to register a marginal decline in the top line when it reports fourth-quarter fiscal 2024 results on March 6 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5.35 billion, which indicates a drop of 0.1% from the prior-year reported figure.    The bottom line of this operator of membership warehouse clubs is expected to decrease year over year. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has risen by a couple of cents to 88 cents over the past seven days, it still suggests a decline of 20.7% from the year-ago quarter.BJ's Wholesale has a trailing four-quarter earnings surprise of 11.5%, on average. In the last reported quarter, this Marlborough, MA-based company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 29.7%.See the Zacks Earnings Calendar to stay ahead of market-making news.BJ's Wholesale Club Holdings, Inc. Price, Consensus and EPS Surprise BJ's Wholesale Club Holdings, Inc. price-consensus-eps-surprise-chart | BJ's Wholesale Club Holdings, Inc. QuoteWhat’s Shaping BJ’s Wholesale’s Upcoming Earnings?BJ's Wholesale’s focus on simplifying assortments, boosting marketing and merchandising capabilities, expanding into high-demand categories and building an own-brand portfolio is commendable. The company remains committed to enhancing omnichannel capabilities, expediting the opening of new clubs and providing value for customers. These endeavors have been contributing to growth in membership signups and renewals. Our model suggests a 6.3% rise in membership fee income for the quarter under review. The fourth quarter is anticipated to reflect the positive impact of BJ's Wholesale's emphasis on better pricing, private-label offerings, merchandise initiatives and digital solutions. The company has been actively expanding its membership base, focusing on attracting and retaining loyal customers through enhanced offerings and upgraded memberships. These factors are expected to have contributed to the top line. We expect merchandise comparable club sales to increase 2.8% for the quarter under review.However, the quarter may also reveal challenges in the form of cautious consumer spending and potential deleverage in SG&A expenses. We anticipate a 4.2% year-over-year increase in SG&A expenses for the fourth quarter, leading to a deleverage of 80 basis points as a percentage of total revenues. As a result, we foresee an operating margin contraction of 80 basis points.What the Zacks Model Predicts About BJAs investors prepare for BJ’s fourth-quarter announcement, the question looms regarding earnings beat or miss. Our proven model predicts that an earnings beat is likely for BJ's Wholesale this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.BJ's Wholesale has an Earnings ESP of +4.28% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.3 More Stocks With the Favorable CombinationHere are three more companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:Costco Wholesale Corporation COST currently has an Earnings ESP of +0.14% and a Zacks Rank #2. The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings per share is pegged at $4.09, suggesting 10.2% year-over-year growth.Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $63.2 billion, which indicates an increase of 8.2% from the figure reported in the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2%, on average.Abercrombie & Fitch ANF has an Earnings ESP of +0.59% and carries a Zacks Rank of 3 at present. ANF is likely to register top-line growth when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.56 billion, which suggests 7.6% growth from the figure reported in the year-ago quarter. The consensus estimate for Abercrombie & Fitch’s fourth-quarter earnings is pegged at $3.49 per share, which calls for 17.5% growth from the figure reported in the year-ago quarter. ANF delivered an earnings beat of 14.8%, on average, in the trailing four quarters.Five Below FIVE has an Earnings ESP of +1.45% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.38 billion, which suggests a 2.9% rise from the figure reported in the year-ago quarter. The company is expected to register a decline in the bottom line. The consensus estimate for Five Below’s fourth-quarter earnings is pegged at $3.35 per share, down 8.2% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 39%, on average.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Five Below, Inc. (FIVE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks