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The Natick, Massachusetts-based company reported first quarter net income of $24.3 million, or 45 cents per share, compared with $17.2 million, or 29 cents per share, in the year-ago period. Revenue rose slightly to $2.26 billion from $2.25 billion.
Although EPS results beat analysts' estimates, revenue fell shy of expectations. On average, Wall Street analysts expected earnings of 44 cents a share on higher revenue of $2.31 billion.
BJ's said that same-store sales fell 1.5% from the year-ago period, hurt by lower gasoline purchases. Same-store sales are considered a key indicator of a retailer's health, since they measure the performance of stores open at least one year.
The company went on to slightly raise its full-year 2009 guidance, now expecting profits of $2.44 to $2.54 a share, compared with previous expectations for $2.42 to $2.52 per share.
BJ's also intimated that it bought back some 2.38 million shares in the quarter, worth about $70.4 million, and said that it has an additional $138.2 million stored for future buybacks under its current share buyback plan.
BJ's shares fell $1.18, or -3.1%, in late morning trading Wednesday.
The Bottom Line
Shares of BJ are getting near 52-week highs of $43 per share. The stock has technical support in the $31-34 price area. If the shares can firm up, we see overhead resistance around the $40-43 price levels. We do not currently rate this non-dividend paying stock, but do follow this specialty retailer closely.
BJ's Wholesale Club, Inc. (BJ) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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