Costco Stock Report– Costco Wholesale Corporation (COST) reported first-quarter fiscal year 2024 earnings on December 14, 2023. The company beat analysts’ expectations on both earnings and revenue.
Costco’s earnings per share (EPS) of $3.58 beat the consensus estimate of $3.42. Revenue of $52.6 billion also beat the consensus estimate of $51.2 billion.
Costco’s comparable sales increased 16.9% year-over-year. The company’s U.S. comparable sales increased 17.2%, while its international comparable sales increased 16.6%.
Costco’s membership revenue increased 14.6% year-over-year. The company ended the quarter with 105.2 million members, up 10.7% from the same quarter last year.
Costco’s gross margin was 13.1%, down 0.1 percentage points from the same quarter last year. The company’s operating margin was 3.6%, up 0.4 percentage points from the same quarter last year.
Costco’s net income was $2.83 billion, up 16.7% from the same quarter last year.
Costco’s board of directors declared a special cash dividend of $15 per share. The dividend will be payable on February 23, 2024, to shareholders of record on February 10, 2024.
Analyst Commentary
Analysts were generally positive on Costco’s first-quarter earnings results.
“Costco’s first-quarter earnings beat expectations on strong comparable sales growth,” said Michael Pachter, an analyst at Wedbush Securities. “The company’s membership growth is also impressive, and the special cash dividend is a nice bonus for shareholders.”
“Costco is firing on all cylinders,” said Neil Saunders, an analyst at GlobalData Retail. “The company is seeing strong demand from consumers, and it is executing well on its growth strategy.”
Outlook
Costco expects comparable sales to increase 12.5% to 13.5% in the second quarter of fiscal year 2024. The company expects earnings per share to be in the range of $3.71 to $3.81.
Conclusion
Costco’s first-quarter earnings results were strong, beating analysts’ expectations on both earnings and revenue. The company’s comparable sales growth was driven by strong demand from consumers, as well as the continued growth of its membership base. Costco is well-positioned for continued growth in the future.
Additional Information
- Costco’s stock price closed at $500.55 on December 14, 2023, up 2.3% from the previous day’s close.
- Costco’s stock has a market capitalization of $250.9 billion.
- Costco is the second-largest retailer in the United States, behind Walmart.
