The 10-second takeaway
For the quarter ended Nov. 25 (Q1), Costco beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins increased across the board.
Costco notched revenue of $23.72 billion. The 15 analysts polled by S&P Capital IQ expected to see a top line of $23.44 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $21.63 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.95. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.93 per share. GAAP EPS of $0.95 for Q1 were 30% higher than the prior-year quarter's $0.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.6%, 10 basis points better than the prior-year quarter. Operating margin was 2.7%, 20 basis points better than the prior-year quarter. Net margin was 1.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $24.92 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $106.08 billion. The average EPS estimate is $4.48.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,432 members out of 4,590 rating the stock outperform, and 158 members rating it underperform. Among 1,303 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,276 give Costco a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Costco is outperform, with an average price target of $103.41.
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