Here's a look at earnings expectations, analyst commentary, and key items to watch ahead of the report.
Costco Q3 Earnings Estimates
Analysts expect the retail giant to report Q3 revenue of $69.42 billion, up from $63.2 billion a year earlier, according to Benzinga Pro. They also project earnings per share of $4.92, compared with $4.28 last year.
Costco has beaten revenue estimates in six straight quarters and eight of the last 10, while topping EPS estimates in four consecutive quarters and nine of the last 10 overall.
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What Experts Are Saying
Oppenheimer analyst Rupesh Parikh maintained an Outperform rating on Costco ahead of the earnings report and raised the price target from $1,100 to $1,160.
The analyst said Costco's value proposition is too big to ignore. Parikh said strong value and fuel savings could improve the company's market share in the quarter.
Parikh also said there could be a special dividend or stock split announcement for Costco.
A report from JPMorgan said Costco is "up to 60% cheaper than traditional grocery," including cheaper prices than Walmart and Target on many items.
Freedom Capital Markets Chief Market Strategist Jay Woods highlighted recent strong earnings from Costco peer BJ's Wholesale (NYSE:BJ) that ...
