BJ’s Wholesale Club EPS Beats Estimates, Analyst Raises Target to $114
BJ’s Wholesale Club reported Q4 adjusted EPS of $0.96 versus $0.93 estimate and revenue of $5.575 billion, driven by 10.9% membership fee income growth and record 8 million members. D.A. Davidson maintained a Buy rating, raising its 2027-based price target to $114 from $110 after the stock’s pullback.
1. Q4 Earnings Exceed Estimates
BJ’s delivered adjusted earnings per share of $0.96 in fiscal Q4, surpassing the consensus estimate of $0.93 and marking a 3.2% year-over-year rise. Total revenues climbed 5.6% to $5.575 billion, underpinned by a 5.5% increase in net sales and a 10.9% jump in membership fee income to $129.8 million.
2. Membership Growth and Engagement
The club ended the quarter with just over 8 million members, up from 7.5 million a year earlier, with higher-tier memberships rising to 42% of the base. Comparable club sales improved 1.6% year-over-year (2.6% ex-gasoline), while digitally enabled sales surged 31%, reflecting strong adoption of online services.
3. Analyst Buy Rating and Price Target Revision
D.A. Davidson’s Michael Baker maintained a Buy rating on the shares after the stock’s pullback, citing long-term growth potential and operational momentum. The firm raised its price target to $114 from $110, based on 24 times the projected 2027 EPS of $4.79.
4. Growth Outlook and Store Expansion
BJ’s anticipates 2%–3% comparable club sales growth (ex-gasoline) in fiscal 2026 and EPS of $4.40–$4.60. The company plans to open 25–30 new clubs over fiscal 2025–2026, leveraging whitespace in its 21-state footprint and ongoing investments in new distribution centers.