Ahead of Earnings, Analysts Say ‘Robust’ Costco May See Stock Split | Global News Avenue

Costco Wholesale (cost) is scheduled to report first-quarter fiscal 2025 earnings after the market close on Thursday, and analysts expect the retailer to report increases in revenue and profit.

13 of the 20 analysts tracked by Visible Alpha “Buy” rating has a “hold” rating on the warehouse retailer’s stock, while seven others have a “hold” rating. However, on average target price The price of $977.95 points to a more cautious outlook, with shares trading about 1% above the price target on Monday.

Analysts expect Costco’s revenue to rise about 7% to $62.1 billion, compared with $57.8 billion a year ago, according to estimates compiled by Visible Alpha. net income Also expected to rise to $1.7 billion, or $3.81 per share$1.6 billion per share in the same period last year, $3.58 per share.

New membership fees, negative consequences of late Thanksgiving

This is the first quarter since Costco Increase membership fees Effective from September start of financial year. However, company executives said last quarter The impact is likely to last into the second half of fiscal 2025.

JPMorgan analysts, who recently raised their price target from $945 to $1,090, recently wrote that past fee increases have given Costco a run for its money. invest in things Such as raising wages and lowering prices to minimize the direct impact of rising interest rates.

Report the time November sales last week Costco said Thanksgiving and Black Friday were a week later than last year, negatively impacting sales, especially online. However, analysts remained bullish following the monthly data, with JPMorgan analysts saying Costco’s “core trends” were “above expectations and quite strong,” while Oppenheimer analysts floated the idea of ​​future stock splits as Costco A potential “positive catalyst” for the stock.

Costco shares fell about 1% on Monday, but have risen nearly 50% since the beginning of 2024.