Membership warehouse operator BJ's Wholesale Club, Inc. (BJ) on Wednesday said that its third-uarter profit plunged 37% from last year, hurt by one-time charges stemming from a legal settlement.
The Natick, Massachusetts-based company reported third quarter net income of $17.7 million, or 32 cents per share, compared with $28.2 million, or 48 cents per share, in the year-ago period.
Excluding one-time items, adjusted profit was 45 cents per share.
Sales rose 2% from last year, however, to $2.45 billion.
On average, Wall Street analysts expected a matching profit of 45 cents per share, on $2.48 billion in revenue.
Same-store sales fell 2.5% in the period. Same-store sales are a key indicator of a retailer's health, since they measure the performance of stores open at least one year.
BJ's shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Shares of BJ are just off 52-week high levels of $40 a share. The stock has technical support in the $30-$31 price area. If the shares can firm up, there could be overhead resistance around the $38-$40 price levels.
This non-dividend paying stock is not currently rated, but is being followed closely.
BJ's Wholesale Club, Inc. (BJ) does not currently pay a dividend.
