BJ's Wholesale Club Holdings, Inc. Just Recorded A 6.0% EPS Beat: Here's What Analysts Are Forecasting Next

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$5.7b arriving 4.3% ahead of forecasts. Statutory earnings per share (EPS) were US$1.10, 6.0% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NYSE:BJ Earnings and Revenue Growth June 1st 2026

Taking into account the latest results, the consensus forecast from BJ's Wholesale Club Holdings' 21 analysts is for revenues of US$23.4b in 2027. This reflects a modest 6.7% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$4.50, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$22.9b and earnings per share (EPS) of US$4.52 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for BJ's Wholesale Club Holdings

Even though revenue forecasts increased, there was no change to the consensus price target of US$101, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic BJ's Wholesale Club Holdings analyst has a price target of US$120 per share, while the most pessimistic values it at US$79.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that BJ's Wholesale Club Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 9.0% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BJ's Wholesale Club Holdings is expected to grow much faster than its industry.

Story Continues

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$101, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on BJ's Wholesale Club Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for BJ's Wholesale Club Holdings going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for BJ's Wholesale Club Holdings that you should be aware of.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments