Costco (COST) To Report Earnings Tomorrow: Here Is What To Expect

Membership-only discount retailer Costco (NASDAQ:COST) will be announcing earnings results this Thursday after market close. Here’s what you need to know.

Costco met analysts’ revenue expectations last quarter, reporting revenues of $63.21 billion, up 8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ gross margin estimates.

Is Costco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Costco’s revenue to grow 7.9% year on year to $85.95 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $5.80 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 9 upward revisions over the last 30 days (we track 24 analysts). Costco has missed Wall Street’s revenue estimates three times over the last two years.

With Costco being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for non-discretionary retail stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Costco’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1,073 (compared to the current share price of $944).

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