The first point most investors will make about CostCo’s (COST) August revenue is that it came in under expectation.
But, that would be to miss the point. A survey of analysts by FactSet Research produced a consensus estimate of $22.91 billion of sales for the quarter
What CostCo did was post comparable store sales which were up 9% and revenue which was up 12% to $5.41 billion.
For the fourth quarter ended Aug. 31, Costco reported sales of $22.6 billion, up 12% from $20.09 billion in the year-earlier quarter.
Wall St. will beat up on CostCo and take its lunch money today. By doing so, it will ignore a superb performance in a murderous retail environment where very few companies are still standing.
Analysts set expectations too high. No one is going to post insanely good numbers, but CostCo was close.
Douglas A.McIntyre
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