Costco Wholesale (NASDAQ:COST) is preparing to release its quarterly earnings on Thursday, 2025-09-25. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Costco Wholesale to report an earnings per share (EPS) of $5.81.
Anticipation surrounds Costco Wholesale's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
In the previous earnings release, the company beat EPS by $0.05, leading to a 3.12% increase in the share price the following trading session.
Here's a look at Costco Wholesale's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.23 | 4.10 | 3.79 | 5.08 |
| EPS Actual | 4.28 | 4.02 | 3.82 | 5.15 |
| Price Change % | 3.00% | -6.00% | 0.00% | -2.00% |
Stock Performance
Shares of Costco Wholesale were trading at $943.6 as of September 23. Over the last 52-week period, shares are up 5.45%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on Costco Wholesale
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Costco Wholesale.
The consensus rating for Costco Wholesale is Outperform, based on 7 analyst ratings. With an average one-year price target of $1108.57, there's a potential 17.48% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Target, Dollar General and Walmart, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Target, with an average 1-year price target of $105.5, suggesting a potential 88.82% downside.
- Analysts currently favor an Neutral trajectory for Dollar General, with an average 1-year price target of $121.47, suggesting a potential 87.13% downside.
- Analysts currently favor an Outperform trajectory for Walmart, with an average 1-year price target of $116.5, suggesting a potential 87.65% downside.
Comprehensive Peer Analysis Summary
In the peer analysis summary, key metrics for Target, Dollar General and Walmart are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Costco Wholesale | Outperform | 8.02% | $8.21B | 7.22% |
| Target | Neutral | -0.95% | $7.31B | 6.16% |
| Dollar General | Neutral | 5.07% | $3.36B | 5.24% |
| Walmart | Outperform | 4.76% | $44.63B | 8.08% |
Key Takeaway:
Costco Wholesale ranks highest in Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity. Overall, Costco Wholesale outperforms its peers in key financial metrics.
Unveiling the Story Behind Costco Wholesale
Costco operates a membership-based, no-frills retail model predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given its frugal cost structure, the firm is able to price its merchandise below that of competing retailers, driving high sales volume per warehouse and generating strong profits on thin margins. Costco operates over 600 warehouses in the United States and has over 60% share in the domestic warehouse club industry. Internationally, Costco operates about 280 warehouses, primarily in Canada, Mexico, Japan, and the UK.
Breaking Down Costco Wholesale's Financial Performance
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Costco Wholesale's revenue growth over a period of 3 months has been noteworthy. As of 31 May, 2025, the company achieved a revenue growth rate of approximately 8.02%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.01%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Costco Wholesale's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.22%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.56% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average. With a ratio of 0.3, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Costco Wholesale visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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