Wall Street analysts expect Costco (COST) to post quarterly earnings of $4.55 per share in its upcoming report, which indicates a year-over-year increase of 13.2%. Revenues are expected to be $69.12 billion, up 8.5% from the year-ago quarter.
The current level reflects an upward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
With that in mind, let's delve into the average projections of some Costco metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Membership fees' will reach $1.33 billion. The estimate points to a change of +11.7% from the year-ago quarter.
The consensus among analysts is that 'Net Sales' will reach $68.24 billion. The estimate indicates a year-over-year change of +9.1%.
Analysts forecast 'Geographic Revenue- Canada' to reach $9.15 billion. The estimate suggests a change of +10.3% year over year.
The collective assessment of analysts points to an estimated 'Geographic Revenue- Other International' of $10.06 billion. The estimate indicates a change of +11.6% from the prior-year quarter.
The combined assessment of analysts suggests that 'Geographic Revenue- United States' will likely reach $49.95 billion. The estimate indicates a change of +7.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Total Company' should come in at 5.8%. Compared to the present estimate, the company reported 9.1% in the same quarter last year.
It is projected by analysts that the 'Comparable sales - Total Company' will reach 6.5%. Compared to the present estimate, the company reported 6.8% in the same quarter last year.
The average prediction of analysts places 'Number of warehouses - Total worldwide' at 928 . Compared to the current estimate, the company reported 897 in the same quarter of the previous year.
Analysts expect 'Comparable sales - U.S.' to come in at 5.7%. Compared to the present estimate, the company reported 8.3% in the same quarter last year.
Analysts' assessment points toward 'Total paid members' reaching 82,875 . The estimate compares to the year-ago value of 78,400 .
The consensus estimate for 'Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Other International' stands at 5.2%. Compared to the present estimate, the company reported 10.3% in the same quarter last year.
Based on the collective assessment of analysts, 'Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Canada' should arrive at 6.7%. The estimate is in contrast to the year-ago figure of 10.5%.
View all Key Company Metrics for Costco here>>>
Costco shares have witnessed a change of +3.1% in the past month, in contrast to the Zacks S&P 500 composite's -1.3% move. With a Zacks Rank #2 (Buy), COST is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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