BJ’s Wholesale stock drops despite earnings beat as Goldman maintains Buy

Published 25/08/2025, 11:12
BJ’s Wholesale stock drops despite earnings beat as Goldman maintains Buy

Investing.com - BJ’s Wholesale Club Holdings Inc (NYSE:BJ) shares fell 8.5% following its second-quarter earnings report, despite beating earnings expectations and raising its full-year guidance. According to InvestingPro data, the company’s market capitalization now stands at $12.9 billion, with the stock trading at a P/E ratio of 22.4x.

The wholesale retailer delivered a 2.3% comparable sales increase excluding gasoline, driven by traffic growth and market share gains. Performance improved as weather conditions normalized during the quarter, according to Goldman Sachs. The company maintains strong financial health with an EBITDA of $1.1 billion over the last twelve months, though InvestingPro analysis indicates short-term obligations currently exceed liquid assets.

BJ’s maintained its fiscal year 2025 revenue guidance, which implies acceleration in the second half on a two-year stack basis due to stronger year-ago comparisons. The company raised its adjusted earnings per share guidance by approximately 2% at the midpoint.

Goldman Sachs reiterated its Buy rating and $130 price target on BJ’s stock, suggesting the market reaction was likely due to concerns that guidance might be too aggressive given the revenue miss and more difficult comparisons ahead.

The investment bank lowered its fiscal year 2026 estimates by approximately 1%, but characterized the 8% stock decline as "overdone" and potentially representing a buying opportunity for investors.

In other recent news, BJ’s Wholesale Club Holdings Inc. announced its second-quarter earnings for fiscal year 2026. The company reported an earnings per share (EPS) of $1.14, exceeding the forecasted $1.10. However, revenue did not meet expectations, totaling $5.38 billion compared to the anticipated $5.49 billion. These mixed financial results have captured the attention of investors and analysts alike. Despite the earnings beat, the shortfall in revenue highlights challenges the company may be facing in its sales performance. Analysts continue to monitor BJ’s Wholesale Club closely, with some firms adjusting their outlooks based on these recent developments. The company’s performance will likely remain under scrutiny as investors assess its financial health moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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