NATICK, Mass. — BJ’s Wholesale Club Inc. posted better than expected results for the third quarter as rumors swirled that the company is seeking a buyout.
BJ’s Wholesale Club Inc. posted better than expected results for the third quarter as rumors swirled that the company is seeking a buyout.
The membership warehouse club operator reported net income of $23 million, or 43 cents per diluted share, on revenues of $2.63 billion. Earnings easily beat the average Wall Street forecast of 36 cents per share, although revenues came in just short of the $2.64 billion expected by analysts.
BJ’s management responded by raising its full-year earnings guidance to a range of $2.48 to $2.52 per share from its prior projection of $2.40 to $2.50 per share.
Recent media reports citing unidentified sources have claimed that BJ’s is looking for a buyout and has hired Morgan Stanley to help it sell itself.
BJ’s is the third-largest warehouse club operator in the United States, with a market value of about $2.3 billion.
In July Los Angeles-based Leonard Green & Partners acquired a 9.5% stake in BJ’s and, in filings with the Securities and Exchange Commission, declared that it might propose taking the company private. The private equity firm has stakes in Whole Foods Markets Inc. and Petco Animal Supplies Inc.