BJ's Wholesale Club (BJ) Exceeds Q3 Profit Projections
Earnings Performance: BJ's Wholesale Club reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $1.1, but slightly down from $1.18 a year ago, marking a +5.45% earnings surprise.
Revenue Insights: The company generated revenues of $5.35 billion, missing the consensus estimate by 0.08%, and has not surpassed revenue estimates in the last four quarters.
Stock Outlook: BJ's shares have underperformed compared to the S&P 500 this year, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Consumer Products - Staples industry is ranked in the bottom 22% of Zacks industries, which may impact BJ's stock performance, while another industry peer, Leslie's, Inc., is set to report its earnings soon.
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What’s Happening with Leslie's Stock Today?
Mixed Financial Results: Leslie’s, Inc. reported adjusted earnings per share of nine cents, significantly missing the consensus estimate of $1.29, while revenue of $389.20 million exceeded expectations of $370.63 million.
Store Closures and Strategic Changes: The company plans to close 80 to 90 underperforming stores and one distribution center as part of a strategy to improve EBITDA by fiscal 2026, alongside a 10% reduction in inventory.
Impairment Charges and Profit Margins: Leslie's recorded $183.8 million in impairment charges, with gross profit increasing by 4.8% to $150.1 million, despite a 6.5% decline in comparable sales.
Analyst Reactions and Stock Performance: Following the earnings report, analysts adjusted their price targets downward, with Leslie’s shares trading 20.95% lower at $2.83.
