Costco Earnings Preview: Analysts Expect Growth, Hint at Stock Split

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Samiat

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Nov 12, 2024
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Costco Earnings Preview: Analysts Expect Growth, Hint at Stock Split

Key Points

Costco Wholesale is set to report first-quarter fiscal 2025 earnings after the market closes Thursday. Analysts predict higher revenue and profit.

65% of analysts rate Costco as a "buy," though the average price target of $977.95 suggests limited upside.

Thanksgiving's late date impacted November sales, especially online, but analysts remain optimistic about Costco's overall performance.

Earnings Expectations
Analysts forecast Costco's revenue will grow 7% to $62.1 billion, with net income rising to $1.7 billion ($3.81 per share) from $1.6 billion ($3.58 per share) last year.

Recent Developments

Membership Fee Increase: Costco raised fees in September, but the financial impact is expected to be more significant in the latter half of fiscal 2025.

Stock Split Speculation: Analysts from Oppenheimer suggested a stock split could act as a positive catalyst for Costco shares.


Stock Performance
Costco shares dipped 1% on Monday but have gained nearly 50% in 2024, showcasing strong market confidence in the retailer.