Ahead of Earnings, Analysts Say ‘Robust’ Costco May See Stock Split

• Costco Wholesale is scheduled to report earnings after the bell on Thursday as it opens its next fiscal year, with analysts expecting revenue and profits to rise.

• Most analysts tracked by Visible Alpha have a “buy” rating, but the average price target indicates they think Costco shares may be close to their ceiling.

• The warehouse retailer recently said the late Thanksgiving and Black Friday weekends negatively impacted online sales.

costco wholesale (It costs) is scheduled to report its first-quarter fiscal 2025 earnings after the market close on Thursday, with analysts expecting the retailer to report higher revenues and profits.

Of the 20 analysts tracked by Visible Alpha, 13 have done so “Buy” ratings. on the retailer’s inventory in warehouses, while the other seven have “hold” ratings. However, the average Target price The $977.95 price suggests a more cautious outlook, with shares trading roughly 1% above their target price on Monday.

Analysts expect Costco to report a roughly 7% increase in revenue to $62.1 billion compared to $57.8 billion at the same time last year, according to estimates compiled by Visible Alpha. Net income It is also expected to rise to $1.7 billion, or $3.81 For each shareFrom $1.6 billion and $3.58 per share at the same time last year.

This quarter is the first since Costco And raise its membership fees In September, it will go into effect on Beginning of the fiscal year. However, company executives said last quarter The impact is likely to be weighted towards the back half of fiscal 2025.

JPMorgan analysts, who raised their price target to $1,090 from $945, recently wrote that previous fee increases led to Costco’s rapid increase. Invest in things Such as higher wages and lower prices, which reduces the direct impact of the rise.

When reported November sales last week Thanksgiving and Black Friday fall a week later than last year, which negatively impacted sales, especially online, Costco said. However, analysts remained upbeat following the monthly data with JPM analysts saying Costco’s “fundamental trends” are “ahead of expectations and very strong,” while Oppenheimer analysts raised the idea of ​​a future stock split as a potential “positive catalyst” for Costco shares.

Costco shares fell about 1% on Monday, but are up about 50% since the start of 2024.

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