What to Expect From Costco Earnings
Costco Wholesale is scheduled to report its fiscal third-quarter financial results after the markets close on Wednesday.
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Costco Wholesale Corp. (NASDAQ: COST) is scheduled to report its fiscal third-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters call for $1.22 in earnings per share (EPS) on $27.07 billion in revenue. In the same period of last year, the company posted EPS of $1.17 and revenue of $26.10 billion.
The company reported April same-store sales, including gasoline sales and foreign exchange effects, that were flat in the United States, up 2% in Canada and down 3% internationally. Globally, same-store sales were flat compared with April 2015. Excluding gasoline and currency exchange effects, U.S. sales rose 2%, Canadian sales rose 7% and international sales rose 1%.
On the same basis, worldwide same-stores sales in the quarter rose 3%. Net sales for the month totaled $8.98 billion, up 3% year over year. Retail Metrics had projected a same-store sales gain of 1.1% (up 4.3% excluding gasoline sales).
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A few analysts weighed in on Costco ahead of the earnings report:
- RBC Capital reiterated its Outperform rating with a $169 price target.
- Piper Jaffray reiterated a Buy rating.
- Robert Baird reiterated a Buy rating.
- Sterne Agee CRT reiterated a Buy rating too.
- Deutsche Bank has a Buy rating with a $196 price target.
- Morgan Stanley reiterated an Overweight rating with a $165 price target.
- Jefferies reiterated a Hold rating with a $135 price target.
Costco has underperformed the broad markets year to date, with the stock down 11%. Over the past 52 weeks, the stock is actually up 1%.
Shares of Costco were trading at $144.24 ahead of the report. The stock has a consensus analyst price target of $167.91 and a 52-week trading range of $117.03 to $169.73.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
