Costco Wholesale Corp. (NASDAQ: COST) is scheduled to release its most recent quarterly earnings report after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $2.02 in earnings per share (EPS) and $41.55 billion in revenue. The fiscal fourth-quarter of last year reportedly had $1.77 in EPS and $36.56 billion in revenue.
This is one of the few conventional retailers where metrics like store traffic, market share gains and a validated model could prove to be healthy for growth and expansion. The company is largely unharmed by e-commerce, and it continues to add stores.
In its most recent quarter, Costco beat estimates on the bottom line but revenues were not up to par. Also consolidated same-stores sales rose 5% year over year in the third quarter, with gains of 6% domestically, 2% in Canada and 4% internationally. Excluding gasoline sales and currency exchange effects, consolidated same-store sales rose 5%, with a rise of 5% in the United States, 3% in Canada and 6% internationally.
Considering oil and gas prices have risen over the past quarter, same-store sales for the quarter might see a small boost.
A few analysts weighed in on Costco ahead of the earnings report:
- Guggenheim has a Neutral rating.
- Robert Baird has a Buy rating with a $200 price target.
- Deutsche Bank has a Hold rating with a $172 price target.
- Oppenheimer has a Buy rating with a $185 price target.
- BMO Capital Markets has a Hold rating with a $160 price target.
- Cowen has an Outperform rating with a $182 price target.
- Wells Fargo has a Hold rating.
- Stifel has a Buy rating with a $173 price target.
So far in 2017, Costco has underperformed the U.S. broad markets, with the stock up only 7%. Over the past 52 weeks, the stock was up closer to 14%.
Shares of Costco were last seen at $166.39, with a consensus analyst price target of $181.41 and a 52-week range of $142.11 to $183.18.