The 10-second takeaway
For the quarter ended Sep. 2 (Q4), Costco beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins grew.
Costco reported revenue of $32.22 billion. The 18 analysts polled by S&P Capital IQ expected to see net sales of $31.71 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $28.18 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 $1.39. The 26 earnings estimates compiled by S&P Capital IQ anticipated $1.31 per share. GAAP EPS of $1.39 for Q4 were 29% higher than the prior-year quarter's $1.08 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 12.4%, about the same as the prior-year quarter. Operating margin was 2.9%, 20 basis points better than the prior-year quarter. Net margin was 1.9%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $23.19 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $105.11 billion. The average EPS estimate is $4.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,377 members out of 4,531 rating the stock outperform, and 154 members rating it underperform. Among 1,245 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,221 give Costco a green thumbs-up, and 24 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 $93.18.
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