- Costco’s earnings per share (EPS) in the second quarter were $4.02, slightly below the estimated $4.11. However, this is an increase from $3.92 year-over-year.
- Total company comparable sales, which include gas and currency effects, rose by 6.8%, surpassing the estimate of 6.38% and improving from the previous year’s 5.6% growth.
- U.S. comparable sales increased by 8.3%, greatly exceeding the estimate of 6.22%.
- Comparable sales in Canada grew by 4.6%, slightly under the anticipated 4.73%.
- International comparable sales saw a modest growth of 1.7%, falling short of the expected 4% rise.
- Excluding fuel and adjusting for constant currency, total company comparable sales saw a significant increase of 9.1%.
- U.S. sales excluding fuel and currency adjustments grew by 8.6%, above the expected 6.48% rise.
- Canada’s comparable sales, excluding gas and currency adjustments, jumped by 10.5%, exceeding the 6.77% estimate.
- International comparable sales excluding fuel and currency adjustments surged by 10.3%, surpassing the estimated 7.37% growth.
- Total revenue reached $63.72 billion, a 9% rise year-over-year, exceeding the forecasted $63.01 billion.
- Net sales amounted to $62.53 billion, reflecting a 9.1% increase from the previous year, outperforming the estimate of $61.75 billion.
- Membership fees totaled $1.19 billion, a 7.4% increase year-over-year, though slightly under the $1.22 billion estimate.
- Analyst recommendations include 29 buys, 15 holds, and 1 sell.
Costco Wholesale on Smartkarma
Smartkarma, a leading investment research network, showcases insightful analyst coverage of Costco Wholesale by Baptista Research. In one report titled “Costco Wholesale Corporation: Kirkland Signature & Key Private Labels Are Aiding Their Growth! – Major Drivers,” the analysts highlight the strong financial performance of Costco in the first quarter of fiscal 2025. With net income rising to $1.798 billion, or $4.04 per diluted share, the report emphasizes the positive impact of key private labels on the company’s growth.
Another report by Baptista Research, titled “Costco Wholesale Corporation: Its Cost Structure & Membership Model Enabling Its Stability & Expansion! – Major Drivers,” delves into Costco’s fourth-quarter financial performance for fiscal year 2024. The analysts acknowledge the company’s neutral results, reflecting operational successes alongside challenges. Notably, Costco saw a 9% increase in net income to $2.354 billion, or $5.29 per diluted share, showcasing the stability and expansion enabled by its cost structure and membership model.
A look at Costco Wholesale Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Costco Wholesale Corporation, known for its diverse range of products in wholesale membership warehouses, has received mixed Smart Scores according to Smartkarma. With a moderate Value and Dividend score of 2 each, the company shines in Growth, Resilience, and Momentum with scores of 4 each. This indicates a strong long-term outlook in terms of continuous growth, solid resilience to economic fluctuations, and positive momentum in the market.
Operating across multiple countries, Costco Wholesale offers a wide array of items from food to electronics. The company’s high Growth, Resilience, and Momentum scores suggest a promising future, offsetting its lower Value and Dividend scores. Investors may find Costco Wholesale a compelling choice for long-term investment opportunities based on its overall Smart Scores performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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