Membership-only discount retailer Costco (NASDAQ:COST) is set to release its earnings report this Thursday afternoon, leaving stakeholders eager for insights into the company’s performance.
In the previous quarter, Costco met analysts’ revenue expectations, reporting revenues of $86.16 billion, marking an 8.1% increase compared to the same period last year. However, the quarter had mixed results, as the company exceeded analysts’ gross margin estimates but fell short on EBITDA estimates.
For the upcoming earnings report, analysts forecast a revenue increase of 7.9% year on year, projecting total revenues to reach $67.03 billion. This aligns closely with the 7.5% growth reported in the same quarter last year. Adjusted earnings per share are anticipated to be around $4.27.
Over the past 30 days, analysts have generally maintained their estimates, indicating a stable outlook for the company as it approaches the earnings announcement. It’s noteworthy that Costco has missed Wall Street’s revenue estimates three times in the last two years, adding some tension to the upcoming report.
As the first major retailer to release earnings this season, Costco’s results will provide important insights for the non-discretionary retail sector. The overall investor sentiment in this segment has been positive, with an average increase of 10.5% in share prices over the last month. Conversely, Costco’s stock has seen a decline of 3.1% during this period and is entering earnings with an average analyst price target of $1,057, well above its current trading price of $887.58.
Despite the recent challenges, Costco remains a significant player in the retail market, and its forthcoming earnings report will be closely monitored by investors and analysts alike.