BJ's Wholesale to Book $240M One-Time Gain From Credit-Card Fee Settlement
BJ is trading near its 52-week low of $83.212 (10% above the low).
Summary
BJ's Wholesale Club will record a one-time pre-tax benefit of about $240 million from a settlement of credit-card interchange fee litigation in which it was a plaintiff. The amount is net of legal fees and will hit fiscal Q3 results. This is a material windfall relative to the company's earnings base and follows the 8-K filed earlier today disclosing the settlement. The gain is non-recurring but provides a significant cash infusion and will boost reported EPS for the quarter. Watch for management commentary on use of proceeds, possibly additional buybacks given the existing $422M repurchase capacity.
At the time of this announcement, BJ was trading at $91.64 on NYSE in the Trade & Services sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $83.21 to $105.78. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.