11:23 AM EST, 11/21/2024 (MT Newswires) -- Shares of BJ's Wholesale Club (BJ) climbed intraday Thursday after the warehouse club operator reported a surprise improvement in fiscal third-quarter earnings and announced an increase in membership fee.

Adjusted earnings per share climbed to $1.18 for the three months ended Nov. 2 from $1 the year earlier and topped the $0.93 average analyst estimate on FactSet. Revenue rose to $5.1 billion from $4.92 billion year over year but missed Wall Street's $5.12 billion expectation.

Comparable club sales rose 1.5% while comparable sales excluding gasoline climbed 3.8%, which BJ's said was led by strong traffic. Analysts surveyed by FactSet were projecting a smaller adjusted comparable sales increase of 1.9%. Shares of BJ's soared 7.5% in Thursday trade.

"Our third quarter results demonstrate the combination of great value and strong execution," Chief Executive Bob Eddy said in a statement. "Our value proposition continues to resonate in new and existing markets."

The company saw membership growth during the quarter and reached a milestone of 7.5 million members, according to Eddy. Membership fee income increased 8.4% from the same point last year to $115 million.

The warehouse retailer plans to enact its first membership fee increase in seven years on Jan. 1, lifting the base cost by $5 to $60 annually and raising the Club+ tier by $10 to $120.

For the fourth quarter, BJ's expects comparable sales excluding gas to rise between 2.5% and 3%, Chief Financial Officer Laura Felice said. The company increased its full-year adjusted comparable sales guidance to between 2.3% and 2.4%. The company in August guided to fiscal 2024 sales at the high end of a 1% to 2% year-over-year growth range.

The company forecasts fourth-quarter adjusted EPS of $0.78 to $0.88, bringing its full-year guidance to between $3.90 and $4. The company's previous outlook was for adjusted EPS to be toward the lower-end of a $3.75 to $4 range. The FactSet consensus is for adjusted EPS of $3.86 in the ongoing year.

Price: 92.40, Change: +6.69, Percent Change: +7.81