Costco (COST) Q2 Earnings Report Preview: What To Look For

Stock Story

Published Mar 06, 2024 02:02

Updated Mar 06, 2024 08:17

Costco (COST) Q2 Earnings Report Preview: What To Look For

Stock Story -

Membership-only discount retailer Costco (NASDAQ:COST) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Costco reported revenues of $57.8 billion, up 6.2% year on year, in line with analyst expectations. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates. Despite slightly missing same-store sales expectations on a consolidated basis and in the US specifically, Costco managed to beat revenue expectations by a small margin.

Is Costco buy or sell heading into the earnings? Find out by reading the original article on StockStory.

This quarter analysts are expecting Costco's revenue to grow 7% year on year to $59.13 billion, in line with the 6.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.64 per share.

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing twelve upward revisions over the last thirty days. The company missed Wall St'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 at to get a hint at how this quarter will unravel for non-discretionary retail stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 8% over the last month. Costco is up 7.3% during the same time, and is heading into the earnings with analyst price target of $709.6, compared to share price of $763.