Costco Q3 Earnings Beat Estimates Despite Revenue Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: stocktwits
- Earnings Performance: Costco reported Q3 adjusted earnings per share of $4.93, slightly exceeding analyst expectations of $4.92, indicating stable profitability despite a revenue miss.
- Revenue Miss: The company's revenue for the quarter was $69.15 billion, falling short of the $69.64 billion expected by analysts, reflecting increased market competition and changing consumer spending, which may pose challenges for future performance.
- Comparable Sales Growth: US comparable sales, excluding gasoline, rose by 6.8%, demonstrating strong consumer demand for Costco's offerings and enhancing the company's competitive position in the retail market.
- Market Sentiment Shift: Sentiment on social media for Costco shifted from “bullish” to “extremely bullish,” with message volume surging over 133% in the past 30 days, indicating growing investor confidence in the company's future performance.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 995.200
Low
769.00
Averages
1061
High
1205
Current: 995.200
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Growth Exceeds Expectations: Costco reported a Q3 comparable sales growth of 9.8%, significantly above the consensus estimate of 7.8%, with gas price inflation contributing approximately 2.2% to this growth.
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