BJ’s Wholesale Club (NYSE:BJ) delivered first-quarter earnings that exceeded Wall Street expectations, though revenue slightly missed the mark, and the company’s full-year outlook fell short of analyst projections at the midpoint. Following the results, shares declined nearly 2% in Thursday’s premarket session.
For the first quarter, the warehouse retailer reported earnings per share of $1.14, outperforming the average analyst forecast of $0.91. Revenue rose 4.8% from a year ago to $5.03 billion, coming in just under the $5.19 billion consensus estimate.
The company reported an 8.1% year-over-year increase in membership fee income, reaching $120.4 million, matching analyst expectations. Comparable club sales, excluding fuel, grew 3.9% over the same period.
“We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities,” said Chairman and CEO Bob Eddy. “Delivering great value is essential in today’s environment, and I am proud of our team members who remain committed to taking care of the families who depend on us.”
Looking ahead, BJ’s reiterated its full-year earnings forecast in the range of $4.10 to $4.30 per share. The midpoint of that guidance slightly lags the current Street estimate of $4.24.
The company also maintained its projection for comparable club sales growth, excluding gasoline, in the range of 2% to 3.5%, aligning closely with the consensus of 3.03%.
Despite strong profitability in the first quarter, investors reacted cautiously to the revenue miss and a guidance reaffirmation that suggests limited upside, at least in the near term.