BJ's Wholesale Posts 24 Percent Jump In Q3 Earnings

November 19, 2008 6:03 p.m. EST

Natick, MA (AHN) - BJ's Wholesale Club announced Wednesday third quarter earnings jumped 24 percent as strong profit from gasoline sales helped propel results. The company also boosted it full-year earnings guidance.

The wholesale operator posted third quarter earnings of $28.2 million or 48 cents a share, up from $22.7 million or 35 cents a share in the same period a year earlier.

Revenue was strong, up 13 percent to $2.46 billion from $2.17 billion. Same-store sales were robust, growing 11.9 percent in the quarter.

The results topped analyst estimates for 46 cents a share on revenue of $2.45 billion, according to Thomson Reuters.

"This strong third-quarter performance was not a one-time phenomenon," Chairman and CEO Herb Zarkin said on a conference call, according to the Associated Press. "It was a continuation of our trend that has been building and gaining momentum over the last seven quarters."

BJ's profit margin on gasoline sales rose in the third quarter as its cost was able to keep pace with the decline in prices since they replenish their supplies daily, most gas stations do this weekly.

The company said it continues to see strong sales in staple products like coffee, paper towels and produce.

Looking forward, the company expects to earn 86 to 90 cents a share in the fourth quarter on same-store sales growth of 4.5 to 5.5 percent. For the full-year, BJ's upped its forecast to $2.20 to $2.30 a share from $2.10 to $2.20 a share.