Lindsey Nicholson (Universal Images Group / UCG)
The Key Takeaways
- Analysts expect that Costco Wholesale will report its earnings on Thursday after the bell as it begins its new fiscal year.
- Most analysts tracked by Visible Alpha have a "buy" rating, but the average price target suggests they think Costco shares may be near their ceiling.
- A warehouse retailer said recently that the Black Friday and Thanksgiving weekends were late, which negatively affected online sales.
Costco Wholesale is expected to release its first-quarter earnings after the close of the markets on Thursday. Analysts anticipate that the retailer will report higher revenue and profit.
Visible Alpha tracks 20 analysts, of which 13 are Visible. “buy” 7 of the 8 warehouse retailers have ratings, but only the one has “hold” ratings. The average price target of $977.95 indicates a cautious outlook. Shares traded 1% over the price target on Monday.
Visible Alpha estimates that analysts expect Costco to report an increase in revenue of approximately 7%, to $62.1 billion from $57.8 at the same point last year. The net income will also rise from $1.6 million to $1.7, or $3.81 a share. This compares to $3.58 a share and $1.6 billion at this time last year.
A New Membership Fee and the Negative Effects of Thanksgiving Day
Costco increased its membership fee in September. The increase took effect at the start of fiscal year. The company’s executives stated last quarter that it is likely the effect will be shifted to the latter half of fiscal 2020.
JPMorgan analysts recently wrote that Costco has invested in higher wages, lower prices and other things to offset the impact of past price increases.
Costco stated that the fact Black Friday and Thanksgiving fell a full week later this year than in previous years had negatively affected sales. This was especially true online. JPM Analysts said that Costco’s monthly results were positive. “core trends” The following are some of the most effective ways to improve your business. “ahead of expectations and quite robust,” While Oppenheimer analyst raised the possibility of future stock splits as a possible “positive catalyst” Costco Shares
Costco’s shares fell about 1% on Monday but have risen nearly 50% from the beginning of 2024.
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