- Costco’s 2nd Quarter Earnings Per Share (EPS) surpassed estimates, coming in at $3.92 compared to last year’s $3.30, which is higher than the estimated $3.62.
- Total company comparable sales, including gas and currency, increased by 5.6%, which is higher than the estimated 5.09%.
- US comparable sales rose by 4.3%, exceeding the estimate of 3.84%.
- Comparable sales in Canada saw a significant increase of 9.2%, far surpassing the estimate of 5.4%.
- International comparable sales also outperformed estimates, rising by 8.6% compared to the estimated 6.73%.
- When excluding fuel and keeping currency constant, total company comparable sales rose by 5.8%, higher than the estimated 4.65%.
- US comparable sales, excluding fuel and currencies, increased by 4.8%, higher than the estimated 4.09%.
- Canadian comparable sales, excluding gas and foreign exchange, rose by 9%, which is higher than the estimated 6.31%.
- International comparable sales, excluding fuel and currencies, saw a growth of 8.2%, surpassing the estimated 6.17%.
- Total revenue reached $58.44 billion, a 5.7% increase compared to last year, although it fell short of the estimated $59.04 billion.
- Net sales amounted to $57.33 billion, a 5.7% increase from last year, which is slightly below the estimated $57.88 billion.
- Membership fees brought in $1.11 billion, an 8.2% increase from last year, narrowly surpassing the estimated $1.1 billion.
- Costco’s performance has led to 28 buy recommendations, 14 hold recommendations, and 1 sell recommendation.
Costco Wholesale on Smartkarma
According to Baptista Research on Smartkarma, Costco Wholesale has been performing well in their recent quarterly result. The company reported net income for the 17-week fourth quarter at $2.16 billion, an increase from $1.868 billion in the same period last year. This translates to a net income of $4.86 per diluted share, compared to $4.20 per diluted share in the previous year. In terms of sales, Costco also saw an increase of 9.4% from their net sales of $70.76 billion in the 16-week fourth quarter last year.
The bullish sentiment from Baptista Research is supported by their insight on the strategies being implemented by Costco for consistent membership renewals. With major drivers in place, such as their strong financial performance and increasing net sales, Costco is expected to continue their positive growth trajectory. Investors can access more in-depth analysis and research on Costco Wholesale on Smartkarma, an independent investment research network where top analysts publish their insights on companies like Costco.
A look at Costco Wholesale Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
According to the Smartkarma Smart Scores, the long-term outlook for Costco Wholesale is looking positive. The company has received an overall score of 3 out of 5, with strong scores in the areas of growth, resilience, and momentum. This indicates that Costco is performing well and has potential for continued success in the future.
As a wholesale membership warehouse, Costco offers a wide range of products including food, automotive supplies, toys, and electronics. With a strong momentum score of 5, it is clear that Costco is experiencing a high level of growth and demand for its products. Additionally, the company has a resilience score of 4, meaning it is well-equipped to weather any potential challenges or changes in the market.
While Costco may not have received the highest scores in value and dividend, with scores of 2 in both areas, its strong performance in other categories suggests that it is still a solid investment option. Overall, Costco’s diverse range of products and strong performance in key areas make it a promising company for long-term investment.
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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