Retail

What to Expect When Costco Reports After the Close

Chris Lange

Published: March 5, 2020 10:55 am

Last Updated: March 13, 2020 10:14 pm

Costco Wholesale Corp. (NASDAQ: COST) is scheduled to release its fiscal second-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $2.07 in earnings per share (EPS) and $38.21 billion in revenue. The same period of last year reportedly had $2.01 in EPS and $35.40 billion in revenue.

During Costco’s fiscal first quarter, the company saw net sales increase 5.6% year over year while membership fees increased by 6.1%.

At the same time, comparable sales increased 4.3% on a companywide basis, driven by: U.S. comparable sales increasing 4.7%, Canada comparable sales increasing 2.9%, other international comparable sales increasing 3.2% and e-commerce comparable sales increased 5.5%.

Costco remains a bullish pick among analysts as the company’s costs and offerings are still attracting shoppers and driving repeat traffic. Also, the recent coronavirus scare has pushed some panic buying among consumers, and Costco would likely see a benefit from increased sales.

Excluding Thursday’s move, Costco stock had outperformed the broad markets with a gain of about 9% year to date. In the past 52 weeks, the share price was up 46%.

Here’s what analysts had to say about Costco ahead of the report:

• Argus has a Buy rating with a $350 price target.
• Telsey Advisory Group has an Outperform rating.
• Robert Baird has a Buy rating and a $325 target.
• Cleveland Research has a Buy rating.
• Credit Suisse rates it as Neutral with a $328 target.
• Loop Capital has a Buy rating and a $345 price target.

Costco stock traded relatively flat at $322.15 on last look, in a 52-week range of $216.22 to $325.26. The consensus price target is $313.76.