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Costco (COST) Lags Q2 Earnings Estimates
COSTCostco(COST) ZACKS·2025-03-06 23:25

Core Insights - Costco reported quarterly earnings of 4.02pershare,missingtheZacksConsensusEstimateof4.02 per share, missing the Zacks Consensus Estimate of 4.09 per share, but showing an increase from 3.71pershareayearago,resultinginanearningssurpriseof1.713.71 per share a year ago, resulting in an earnings surprise of -1.71% [1] - The company posted revenues of 63.72 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 0.79% and increasing from 58.44billionyearoveryear[2]Costcoshareshaveincreasedbyapproximately14.458.44 billion year-over-year [2] - Costco shares have increased by approximately 14.4% since the beginning of the year, contrasting with a -0.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is 4.25, with expected revenues of 62.76billion,andforthecurrentfiscalyear,theEPSestimateis62.76 billion, and for the current fiscal year, the EPS estimate is 18.03 on revenues of 273.31billion[7]TheestimaterevisionstrendforCostcoiscurrentlyfavorable,leadingtoaZacksRank2(Buy)forthestock,indicatingexpectedoutperformanceinthenearfuture[6]IndustryContextTheRetailDiscountStoresindustry,towhichCostcobelongs,iscurrentlyrankedinthetop34273.31 billion [7] - The estimate revisions trend for Costco is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Retail - Discount Stores industry, to which Costco belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Another company in the same industry, Dollar Tree, is expected to report quarterly earnings of 2.18 per share, reflecting a year-over-year decline of -14.5% [9]