What Analysts Consider Costco Inventory Forward of Earnings

Costco Wholesale (COST) is ready to report earnings after the bell Thursday for the second quarter of fiscal 2025, with analysts anticipating rising income and income.

Costco is projected to report earnings per share of $4.13 on income of $63 billion, up from EPS of $3.92 on income of $58.44 billion a yr in the past.

Analysts largely charge the retailer’s inventory as a “purchase,” with 12 of the 18 analysts tracked by Seen Alpha issuing a “purchase” or equal ranking for the inventory, in comparison with six “maintain” scores. Nonetheless, their common worth goal of $1,063 is simply 2.5% above Tuesday’s shut.

Second Quarter Reflecting Membership Price Hike

The quarter will mark the second since Costco’s first membership payment bump in seven years went into impact in September. Executives have stated that due to strikes to boost worker wages and decrease costs, the influence of the upper membership charges on margins will seemingly be weighted to the again half of the fiscal yr and into fiscal 2026.

Earlier this month, Costco stated its comparable retailer gross sales for January rose 7.5% year-over-year, with a 9.2% soar within the U.S. and a 13.6% soar in on-line gross sales. For the complete quarter, analysts count on the metric to come back in at 6.6% progress from the identical time final yr.

JPMorgan analysts stated following the gross sales knowledge launch that executives advised there have been no one-time results like tariffs or climate driving gross sales. That pattern indicated that Costco “continues to realize share whereas the patron is healthier than they had been final summer time,” the analysts wrote, calling the retailer’s inventory a “core holding.”

Costco shares edged 1% decrease Tuesday to $1,036.87, although they’ve gained over 36% over the previous 12 months. They reached an all-time excessive at $1,076.86 on Feb. 13.

UPDATE—March 4, 2025: This text has been up to date because it was first printed to mirror more moderen analyst estimates and share worth values.