BJ’s Wholesale Club Earnings: Yet Another Quarter of Profitability

BJ’s Wholesale Club, Inc. (NYSE:BJ) reported net income above Wall Street’s expectations for the first quarter. BJ’s Wholesale Club, Inc. is a warehouse club operator in the Eastern United States.

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BJ’s Wholesale Club Earnings Cheat Sheet for the First Quarter

Results: Net income for BJ’s Wholesale Club, Inc. rose to $33.7 million (62 cents/share) vs. $26.1 million (49 cents/share) in the same quarter a year earlier. A rise of 29% from the year earlier quarter.

Revenue: Rose 10% to $2.83 billion YoY.

Actual vs. Wall St. Expectations: BJ beat the mean analyst estimate of 56 cents/share. Estimates ranged from 50 cents per share to 57 cents per share.

Quoting Management: BJ’s president and chief executive officer, Laura Sen, said, “BJ’s is off to a great start in 2011. Our stronger than expected performance for the first three months of 2011 reflects net sales above plan, continued margin expansion and excellent cost control. I am very proud of our team members in the field, distribution centers and home office for delivering another great quarter.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 2% to $2.85 billion in fourth quarter of the last fiscal year. The figure rose 4.9% in third quarter of the last fiscal year from the year earlier and climbed 8.5% in second quarter of the last fiscal year from the year-ago quarter.

Net income has dropped 2.6% year over year on average across the last five quarters. Performance was hurt by an 81.5% decline in the fourth quarter of the last fiscal year from the year earlier quarter.

Competitors to Watch: PriceSmart, Inc. (NASDAQ:PSMT), Costco Wholesale Corp. (NASDAQ:COST), Wal-Mart Stores, Inc. (NYSE:WMT), Liquidation World Inc. (LIQWF), Target Corporation (NYSE:TGT), Wal-mart de Mexico S A B de C V (WMMVY), 99 Cents Only Stores (NYSE:NDN), Family Dollar Stores, Inc. (NYSE:FDO), and Al Ahlia Enterprises PLC (ABLA).

Stock Performance: Shares of BJ are up 1% from the previous close of $51.29.

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