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The Markets
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Retail

Costco likely to continue positive trend with 4Q earnings

Costco Wholesale Corporation (NASDAQ:COST) reports first-quarter results after the closing bell on December 14 and analysts expect its positive earnings trend to continue.

After topping expectations with its 4Q 2023 results, the consensus is for 11% year-over-year growth in 1Q 2024 earnings per share to $3.44, according to Zacks Investment Research.

With the company beating earnings estimates in the previous two quarters, Zacks points out that another earnings surprise is possible, with a favorable change in earnings estimates for Costco lately.

The wholesale retailer reports sales monthly and the direction has also been positive. September net sales rose 6% from a year earlier to $22.75 billion, while October’s increased by 4.5% to $18.53 billion and November’s improved by 5.1% to $20.14 billion.

It also earns revenue from membership fees.

The company operates 861 warehouses and e-commerce sites, mostly in North America and Puerto Rico.

Contact the author at stephen.gunnion@proactiveinvestors.com

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