Washington-based Costco Wholesale Corporation (COST) operates a chain of membership-only big-box warehouse club retail stores. With a market cap of $359.1 billion, Costco operates through its outlets spread across North America, Asia, and Europe and its e-commerce website. It is expected to announce its Q4 earnings for fiscal 2024 after the market closes on Thursday, Sept. 26.
Ahead of the event, analysts expect Costco to report a profit of $5.02 per share, up 3.3% from $4.86 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections over the past three quarters. Its EPS for the last reported quarter grew by 29% year over year to $3.78. At the same time, its total revenue grew 9.1% from the prior year quarter to $58.5 billion.
Looking ahead to fiscal 2024, analysts expect Costco to report an EPS of $15.97, up 8.7% from $14.69 in fiscal 2023. In fiscal 2025, its EPS is projected to grow 10.5% year over year to $17.64.
COST stock has gained 22.7% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 14% gains and the S&P 500 Consumer Staples Sector SPDR’s (XLP) 8.3% returns over the same time frame.
Despite macroeconomic headwinds, Costco reported an impressive 29.1% annual growth in net income and a 7.6% growth in membership fees. It recorded a membership renewal rate of 93% in the U.S. and Canada and 90.5% worldwide, indicating growing customer loyalty. It also witnessed a 14.1% rise in cash flow from operations in the past three quarters compared to corresponding quarters in fiscal 2023, enabling it to invest in further expansion of its international operations. COST shares edged up 1.1% after it released its Q3 earnings report on May 30.
The consensus opinion on Costco stock is bullish, with an overall “Strong Buy” rating. Out of the 29 analysts covering the stock, 19 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and seven advise a “Hold” rating.
The average target price for Costo is $881.72, indicating a potential upside of 8.9% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
