BJ’s Wholesale Club, Inc. Earnings Cheat Sheet: Two Quarters in a Row of Rising Profit

BJ’s Wholesale Club, Inc. (NYSE:BJ) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for BJ’s Wholesale Club, Inc. rose to $45.7 million (84 cents per share) vs. $35.8 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter.

Revenue: Rose 9.4% to $3.05 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BJ beat the mean analyst estimate of 76 cents per share. Analysts were expecting revenue of $3 billion.

Quoting Management: Laura Sen, BJ’s president and chief executive officer, said, “BJ’s outperformance of 10% versus our guidance reflected favorable merchandise margins, higher gas profitability and expense savings that exceeded plan. We are very excited about our positive sales momentum for the second quarter and first half of 2011. It is clear that our members are doing more of their weekly food shopping with us. And I believe that we have tremendous opportunities to further grow our business.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.

Gross margin shrank 8.2 percentage points to 2.6%. The contraction appeared to be driven by increased costs, which rose 19.5% from the year earlier quarter while revenue rose 9.4%.

Revenue has risen the past four quarters. Revenue increased 8.5% to $2.83 billion in the first quarter. The figure rose 2% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 29% from the year earlier.

Competitors to Watch: PriceSmart, Inc. (NASDAQ:PSMT), Costco Wholesale Corp. (NASDAQ:COST), Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), 99 Cents Only Stores (NYSE:NDN), Family Dollar Stores, Inc. (NYSE:FDO).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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