Costco Wholesale Co., Ltd. price We plan to report second-quarter earnings after the financial results. The stock has traded in a relatively tight range over the past year and a half and seems to be building bullish flags month after month.
Here’s what to expect from Warehouse Club retailers after Bell.
Things to know before reporting: Benzinga Pro estimates that Costco will post second quarter earnings of $3.21 per share, or $55.54 billion in earnings.
The retailer delivered its sixth consecutive quarter of upside surprises at both the top and bottom before falling just short of analyst estimates last quarter.
Costco’s results included a charge of 15 cents per diluted share primarily related to reduced charter transportation activity. A tax benefit of 12 cents per diluted share related to stock-based compensation was also incorporated into the results.
The company hasn’t provided any forward-looking guidance, but it does report monthly sales, so investors have an idea of what to expect from Thursday’s results.
From Last Quarter: Four Costco Analysts’ Mistakes on Q1 Earnings: ‘Consumables Strength and Membership Improvements’
Sales are trending upward: Costco reported December net sales of $23.8 billion, up 7% year-over-year. Comps were up 6.4% in the US and 9.1% internationally.
Net sales for January were $16.84 billion, up 6.9% from the prior year. Costco reported net sales of $99 billion for the 22 weeks ending Jan. 29, up 7.5% from the same period last year.
The company noted that the Lunar New Year/Chinese New Year holiday took place 10 days earlier in 2023, negatively impacting company-wide sales by about 0.25%. The 22-week comp saw him rise 7.8% in the US, while overseas he fell 0.2%. Investors should keep an eye out for further comment on the impact, as the early Chinese New Year could give retailers a strong third quarter.
Costco declared a quarterly cash dividend of 90 cents per share and reauthorized a $4 billion buyback in mid-January.
On Monday, Telsey Advisory Group echoed Costco with an Outperform rating and a price target of $580, indicating the company likes what it sees from print-headed retailers.
Since last year: Is Costco raising the price of its famous hot dogs because of inflation?
COST price action: Costco has a 52-week high of $612.27 and a 52-week low of $406.51.
Shares were up 0.49% to $481.01 at the time of writing, according to Benzinga Pro.
Photo via Shutterstock.