What To Expect From Costco’s (COST) Q3 Earnings

Membership-only discount retailer Costco (NASDAQ:COST) will be reporting earnings this Thursday afternoon. Here’s what to look for.

Costco beat analysts’ revenue expectations last quarter, reporting revenues of $70.53 billion, up 11.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ gross margin estimates.

Is Costco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Costco’s revenue to grow 10.1% year on year, improving from the 8.1% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Costco rarely misses Wall Street’s revenue estimates.

With Costco being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unfold for non-discretionary retail stocks. However, the whole sector has been hit hard over the last month as stocks in Costco’s peer group are down 5.8% on average. Costco is down 7.4% during the same time .

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