Retail

What to Expect When Costco Reports After the Close

Chris Lange

Published: December 13, 2018 11:50 am

Last Updated: March 13, 2020 10:15 pm

Costco Wholesale Corp. (NASDAQ: COST) is scheduled to release its most recent quarterly results after the markets close on Thursday. The consensus estimates from Thomson Reuters are calling for $1.62 in earnings per share (EPS) and $34.79 billion in revenue. The fiscal first quarter of last year reportedly had $1.45 in EPS and $31.81 billion in revenue.

In the most recent quarter, total comparable sales increased 9.5% from last year. This consisted of a 10.8% increase in comparable sales in the United States, a 5.7% increase in Canada and a 6.7% increase in international comparable sales. On a constant currency basis and excluding the impact of gas, comparable sales increased 7.2%.

At the same time, total e-commerce sales increased 26.2% year over year. On a constant currency basis and excluding gas, e-commerce sales were relatively unchanged at 26.3%.

Costco ended its 2018 fiscal year with 762 warehouses in operation, including 527 in the United States and Puerto Rico, 100 in Canada and 135 other international stores.

Excluding Thursday’s move, Costco has outperformed the broad markets with its stock up about 21% in the past 52 weeks. In the past six months, the stock is up 12%.

A few analysts weighed in on Costco ahead of the report:

• Citigroup has a Neutral rating with a $238 price target.
• Northcoast Research has a Buy rating.
• Argus has a Buy rating with a $255 price target.
• Loop Capital has a Buy rating with a $265 price target.
• RBC has an Outperform rating with a $253 price target.
• Deutsche Bank has a Hold rating with a $223 price target.
• BMO Capital Markets has an Outperform rating with a $258 price target.

Shares of Costco were last seen down about 0.5% at $226.53, with a consensus analyst price target of $243.83 and a 52-week range of $175.79 to $245.16.