Core Viewpoint - Costco Wholesale continues to demonstrate strong performance in the retail sector, achieving significant revenue and earnings growth despite tariff challenges [1][3]. Financial Performance - Quarterly revenue increased by 8% to $63.21 billion, with adjusted earnings per share (EPS) rising 13% to $4.28, surpassing analyst expectations [5]. - Same-store sales rose 8% when adjusted for gasoline prices and foreign currency, with U.S. same-store sales up 7.9% and Canadian comparable-store sales climbing 7.8% [6]. - E-commerce revenue grew by 15.7% on an adjusted basis, indicating strong online sales performance [6]. Customer Experience Initiatives - The company is investing in technology to enhance the checkout process and has extended gas-station hours [4]. - A "buy now, pay later" program for big-ticket items has been introduced, showing initial promise [4]. Membership Growth - Membership-fee revenue increased by 10.4% to $1.24 billion, benefiting from a fee hike implemented in September [8]. - Memberships rose by 6.8% to 79.6 million paid households, with higher-cost executive memberships increasing by 9% [8]. Market Position - Costco's same-store sales growth outperformed competitors, with Target reporting a decline of 3.8% and Walmart achieving 4.5% growth [11]. - The company continues to gain market share as consumers are attracted to the value offered by warehouse stores [11]. Expansion Plans - Costco opened eight new locations in the quarter, bringing the total to 905 warehouse stores, with plans to open nine more in the upcoming quarter [10]. - Approximately 80% of new openings will be in high-traffic markets, which may cannibalize some existing store sales but will help alleviate congestion [10]. Valuation Insights - The stock trades at a forward price-to-earnings (P/E) ratio of 57.5, reflecting a premium valuation that has expanded significantly in recent years [12]. - Despite concerns over high valuation relative to revenue growth, the stock's momentum remains strong [15].

Group 1 - The article emphasizes the importance of delivering alpha-generating investment ideas through a structured and evidence-based approach [1] - The investment strategy involves a generalist approach, analyzing various sectors with perceived alpha potential compared to the S&P 500 [1] - Typical holding periods for investments range from a few quarters to multiple years, indicating a long-term investment perspective [1] Group 2 - The analyst has no current positions in the mentioned companies but may initiate a long position in Costco (COST) within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by any compensation from companies mentioned [2] - There is no business relationship between the author and the companies discussed, ensuring an independent viewpoint [2]

Exceeding expectations for its fiscal third quarter after-market hours on Thursday, Costco Wholesale (COST)  stock has spiked +4% in today’s trading session. The bulk food and general merchandise provider has been able to weather market volatility, with COST now up +14% year to date and sitting on gains of over +120% in the last three years.Still, as one of the largest warehouse operators, Costco stock does carry a hefty price tag of over $1,000 a share, making it a worthy topic to decide whether now is a g ...

Costco Wholesale Corp (NASDAQ:COST) stock is up 3.4% to trade at $1,042.50 at last check, after the company reported an earnings and revenue beat for its fiscal third quarter, as well as an 8% sales jump.The equity attracted no fewer than four price-target hikes in response, with Morgan Stanley raising its objective to $1,225 from $1,150. There is plenty of room for more bull notes, too, as COST's 12-month consensus target price of $1,067.88 is only a slim 2.5% premium to current level.Shares are today paci ...

Core Insights - Costco Wholesale Corporation reported strong third-quarter fiscal 2025 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Quarterly earnings per share were $4.28, surpassing the Zacks Consensus Estimate of $4.25 and increasing from $3.78 in the prior year [2]. - Total revenues reached $63,205 million, an 8% increase from the previous year, and also above the Zacks Consensus Estimate of $63,140.5 million [2]. - Comparable sales grew by 5.7% year over year, exceeding the estimated 4.7%, with U.S. comparable sales increasing by 6.6% [3][6]. Membership and Sales Growth - Membership fees rose by 10.4% to $1,240 million, with total paid household members increasing by 6.8% to 79.6 million [5]. - The number of total cardholders grew by 6.6% to 142.8 million, indicating strong customer loyalty with a membership renewal rate of 90.2% [4][5]. Operational Metrics - Global shopping frequency improved by 5.2%, while average transaction size grew by 0.4% [6]. - E-commerce sales saw a significant increase of 14.8% year over year, or 15.7% when excluding gasoline prices and currency fluctuations [7]. Margin and Income Growth - Gross margin expanded by 41 basis points to 11.3%, and operating income increased by 15.2% to $2,530 million, with operating margin improving by 20 basis points to 4% [7]. Expansion Plans - Costco operates 905 warehouses globally, with plans to open 27 new locations in fiscal 2025, including three relocations [8][9]. Financial Health - The company ended the quarter with cash and cash equivalents of $13,836 million and long-term debt of $5,717 million, with capital expenditures of approximately $1.13 billion for the quarter [11].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

John "Jack" Bowman is a registered investment advisor, economics educator, research analyst, and commentator from Southern California. He mostly covers macroeconomics, income-focused investments, derivatives, alternatives, and portfolio management. He is a contributing analyst for the Sungarden Investors Club on Seeking Alpha, where he, alongside leader Rob Isbitts, teach investors how to make better portfolio decisions, focusing on risk management, and total return investing. Jack applies the crossover of ...

Group 1 - Texas Roadhouse is being compared to Costco in the restaurant industry due to its elevated trading multiples and consistent growth, showing resilience despite quarterly results [1] - The company is recognized for its strong qualitative attributes, which makes it an attractive investment opportunity [2] Group 2 - The focus is on investing in companies with solid fundamentals and holding them long-term, indicating a strategy aimed at maximizing exposure to high-performing stocks [2]

Market Overview - Major indexes showed positive performance with the Dow up +108 points (+0.26%), S&P 500 rising +0.40%, Nasdaq increasing +0.39%, and Russell 2000 growing +0.33% [2] - Bond yields decreased, with the 10-year yield at +4.42%, 2-year at +3.94%, and 30-year at +4.92% [2] Real Estate Sector - Pending Home Sales fell -6.3% month over month in April, significantly worse than the expected -1.0% drop, following a +5.5% increase in March [3] - The overall index for Pending Home Sales stood at +71.3, with the West and South regions experiencing the largest declines of -8.9% and -7.7% respectively [3] Company Earnings Reports - Costco reported fiscal Q3 earnings of $4.28 per share, exceeding expectations by $0.05, with revenues of $63.2 billion, an 8% year-over-year increase [4][5] - The Gap's shares fell -17% despite beating earnings estimates with $0.51 per share on revenues of $3.5 billion, as tariffs could cost the company $100-150 million [5] - Dell Technologies reported Q1 earnings of $1.55 per share, missing expectations but showing a +17% year-over-year growth, with Infrastructure Solutions up +12% [6] - Marvell Technology narrowly beat earnings expectations with $0.62 per share and $1.89 billion in revenues, a record high, and raised next-quarter guidance [7] - Ulta Beauty reported earnings of $6.70 per share, surpassing expectations of $5.77, with revenues of $2.85 billion exceeding the $2.80 billion forecast [9]

For the quarter ended May 2025, Costco (COST) reported revenue of $63.21 billion, up 8% over the same period last year. EPS came in at $4.28, compared to $3.78 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $63.14 billion, representing a surprise of +0.10%. The company delivered an EPS surprise of +0.71%, with the consensus EPS estimate being $4.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...