Costco Wholesale Corporation (NASDAQ:COST) is expected to report a rise in top-line and bottom-line growth when it releases its fourth-quarter earnings after the closing bell on Tuesday.
Following a disappointing third quarter which saw net sales up by just 1.9% and diluted earnings per share (EPS) decline by 3.6% as shoppers pulled back on discretionary spending due to high inflation and economic uncertainty, the prognosis for 4Q is much healthier.
According to Zacks Consensus Estimate, revenues are expected to come in 9.1% higher at $78.7 billion, while diluted EPS will be 12% higher at $4.71.
Costco reports sales on a monthly basis. For July sales were up 4.5% to $17.6 billion, while June sales rose 0.4% to $22.9 billion and sales in May increased by 1.2% to $18.5 billion.
It also earns revenue from membership fees.
The company operates 858 warehouses and e-commerce sites, mostly in North America and Puerto Rico.
Ahead of its results, Costco's shares were unchanged at $556.61 shortly before midday in New York. They've gained 24% so far for 2023.
~Updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com