Costco Q1 Preview: Forecast of 8.7% Sales Growth and 12.6% Earnings Gain

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Costco reported last quarter revenue of $67.31 billion, up 8.3% year-on-year, with gross margin beating estimates and EBITDA matching expectations. Analysts forecast Q1 revenue increase of 8.7% and earnings growth of 12.6%, reflecting reconfirmed estimates despite prior revenue misses.

1. Last Quarter Financial Results

Costco reported $67.31 billion in revenues for the last quarter, an 8.3% year-on-year increase, delivering a gross margin that surpassed analysts’ estimates and matching consensus on EBITDA.

2. Q1 Forecast and Historical Comparison

Analysts project Q1 revenue to rise 8.7% year-on-year, alongside a 12.6% increase in earnings, reflecting last year’s 9% revenue growth in the same quarter.

3. Analyst Confidence and Peer Performance

Analysts have maintained forecasts over the past 30 days, indicating confidence despite Costco missing revenue estimates multiple times over two years. Over the past month, Costco shares have climbed 4.1%, contrasting with a 3.6% decline among its retail peers.

Sources

FI