Brokerages Expect Costco Wholesale Co. (NASDAQ:COST) Will Post Earnings of $2.53 Per Share

Equities research analysts predict that Costco Wholesale Co. (NASDAQ:COST) will announce earnings per share (EPS) of $2.53 for the current fiscal quarter, Zacks Investment Research reports. Five analysts have provided estimates for Costco Wholesale’s earnings. The lowest EPS estimate is $2.47 and the highest is $2.60. Costco Wholesale posted earnings per share of $2.36 during the same quarter last year, which suggests a positive year-over-year growth rate of 7.2%. The firm is expected to issue its next earnings results on Thursday, October 3rd.

According to Zacks, analysts expect that Costco Wholesale will report full-year earnings of $8.04 per share for the current fiscal year, with EPS estimates ranging from $7.97 to $8.11. For the next year, analysts anticipate that the firm will report earnings of $8.51 per share, with EPS estimates ranging from $8.28 to $8.85. Zacks’ earnings per share calculations are an average based on a survey of sell-side analysts that that provide coverage for Costco Wholesale.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, May 30th. The retailer reported $1.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.83 by $0.06. Costco Wholesale had a net margin of 2.41% and a return on equity of 25.03%. The business had revenue of $34.74 billion for the quarter, compared to analysts’ expectations of $34.72 billion. During the same quarter in the previous year, the firm posted $1.70 EPS. The business’s revenue for the quarter was up 7.4% compared to the same quarter last year.

COST has been the topic of a number of analyst reports. Robert W. Baird boosted their target price on shares of Costco Wholesale from $270.00 to $290.00 and gave the company an “outperform” rating in a report on Thursday, July 11th. BidaskClub raised shares of Costco Wholesale from a “buy” rating to a “strong-buy” rating in a report on Saturday. Raymond James boosted their target price on shares of Costco Wholesale from $260.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, July 18th. Zacks Investment Research raised shares of Costco Wholesale from a “hold” rating to a “buy” rating and set a $272.00 target price on the stock in a report on Tuesday, June 11th. Finally, Nomura upped their price target on shares of Costco Wholesale from $235.00 to $256.00 and gave the stock a “neutral” rating in a report on Thursday, July 11th. Seven analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $266.04.

COST stock traded up $2.58 during midday trading on Tuesday, reaching $274.10. 1,230,800 shares of the company’s stock traded hands, compared to its average volume of 1,822,696. The company has a 50-day moving average price of $274.36 and a two-hundred day moving average price of $247.55. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.48 and a current ratio of 0.98. Costco Wholesale has a 52 week low of $189.51 and a 52 week high of $284.31. The firm has a market capitalization of $119.41 billion, a PE ratio of 40.13, a price-to-earnings-growth ratio of 3.81 and a beta of 0.95.

Costco Wholesale declared that its Board of Directors has initiated a stock repurchase program on Friday, April 26th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the retailer to purchase up to 3.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

The business also recently announced a quarterly dividend, which will be paid on Friday, September 13th. Investors of record on Friday, August 30th will be given a $0.65 dividend. The ex-dividend date is Thursday, August 29th. This represents a $2.60 annualized dividend and a yield of 0.95%. Costco Wholesale’s dividend payout ratio (DPR) is presently 38.07%.

In related news, VP Patrick J. Callans sold 2,000 shares of the company’s stock in a transaction on Friday, June 7th. The shares were sold at an average price of $252.15, for a total value of $504,300.00. Following the completion of the transaction, the vice president now directly owns 66,479 shares in the company, valued at $16,762,679.85. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider James C. Klauer sold 5,000 shares of the company’s stock in a transaction on Friday, June 7th. The stock was sold at an average price of $255.53, for a total transaction of $1,277,650.00. Following the completion of the transaction, the insider now owns 48,310 shares of the company’s stock, valued at $12,344,654.30. The disclosure for this sale can be found here. Insiders sold 28,136 shares of company stock valued at $7,380,374 over the last quarter. 0.21% of the stock is owned by company insiders.

A number of large investors have recently made changes to their positions in COST. Horan Capital Advisors LLC. purchased a new stake in Costco Wholesale during the first quarter valued at about $26,000. Krane Funds Advisors LLC purchased a new stake in shares of Costco Wholesale during the second quarter worth about $26,000. Massey Quick Simon & CO. LLC purchased a new stake in shares of Costco Wholesale during the second quarter worth about $27,000. Arbor Wealth Management LLC purchased a new stake in shares of Costco Wholesale during the fourth quarter worth about $33,000. Finally, Thor Advisors LLC purchased a new stake in shares of Costco Wholesale during the first quarter worth about $35,000. Institutional investors own 71.20% of the company’s stock.

About Costco Wholesale

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio products; meat, bakery, deli, and produces; and apparel and small appliances.

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Earnings History and Estimates for Costco Wholesale (NASDAQ:COST)

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