Membership-only discount retailer Costco (NASDAQ:COST) will be reporting earnings tomorrow after market close. Here's what you need to know.
Last quarter Costco reported revenues of $53.6 billion, up 2% year on year, missing analyst expectations by 1.71%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates. Free cash flow also declined significantly.
Is Costco buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Costco's revenue to grow 8.14% year on year to $78 billion, slowing down from the 15% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.82 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
With Costco being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for non-discretionary retail stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 7.37% over the last month. Costco is up 4.62% during the same time, and is heading into the earnings with with analyst price target of $572.46, compared to share price of $559.53.
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The author has no position in any of the stocks mentioned.