Costco Wholesale (NASDAQ:COST) Issues Quarterly Earnings Results

Key Points

• Costco reported quarterly EPS of $4.93, which came in slightly below Wall Street’s estimate of $4.98. However, revenue of $70.53 billion topped expectations of $69.68 billion.
• The stock slipped after the results, with shares trading down $8.49 to $995.20 during the session. Despite the pullback, Costco remains a large-cap name with a premium valuation and strong balance sheet metrics.
• Costco raised its quarterly dividend to $1.47 per share from $1.30, marking an annualized payout of $5.88 and a yield of about 0.6%. The company’s payout ratio is 30.58%.

Costco Wholesale (NASDAQ:COST - Get Free Report) released its quarterly earnings data on Thursday. The retailer reported $4.93 EPS for the quarter, missing analysts' consensus estimates of $4.98 by ($0.05), FiscalAI reports. Costco Wholesale had a return on equity of 28.57% and a net margin of 2.99%.The company had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $69.68 billion.

Costco Wholesale Price Performance

Shares of NASDAQ:COST traded down $8.49 during midday trading on Thursday, hitting $995.20. The stock had a trading volume of 2,712,824 shares, compared to its average volume of 2,103,975. The company's 50-day moving average price is $1,008.29 and its 200-day moving average price is $962.02. The company has a market capitalization of $441.52 billion, a P/E ratio of 51.75, a price-to-earnings-growth ratio of 4.93 and a beta of 0.92. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were issued a $1.47 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. This is an increase from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 30.58%.

Trending Headlines about Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Analysts and recent previews point to another solid quarter, with Costco’s monthly sales already showing accelerating momentum and Wall Street expectations calling for continued earnings and revenue growth. Article Title
• Positive Sentiment: Costco continues to be viewed as a defensive retail winner, supported by high membership renewal rates, strong app engagement, and a model that benefits from inflation and higher gas prices drawing shoppers into stores. Article Title
• Positive Sentiment: CEO Ron Vachris said AI is not replacing workers at Costco, but “elevating” them, reinforcing the company’s people-first, service-oriented culture that investors often associate with long-term customer loyalty. Article Title
• Neutral Sentiment: Several previews framed Costco’s earnings as a major test for the consumer and the broader retail sector, but the market appears to be waiting for actual results before making a bigger move. Article Title
• Negative Sentiment: Shares have paused near record levels ahead of earnings, with some commentary saying the stock’s premium valuation makes it vulnerable if results or guidance merely meet expectations instead of beating them. Article Title
• Negative Sentiment: Broader market headlines also showed futures weakening earlier in the day, which can add pressure to a stock already trading with a high bar ahead of earnings. Article Title

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total value of $732,204.60. Following the sale, the executive vice president owned 6,121 shares of the company's stock, valued at approximately $6,139,485.42. This trade represents a 10.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.10% of the stock is owned by insiders.

Institutional Trading of Costco Wholesale

Several institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC lifted its stake in shares of Costco Wholesale by 12.3% in the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer's stock valued at $18,165,000 after acquiring an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of Costco Wholesale by 13.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer's stock valued at $1,029,000 after purchasing an additional 130 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in shares of Costco Wholesale by 4.5% during the second quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer's stock worth $3,814,000 after purchasing an additional 165 shares during the last quarter. Pinnacle Wealth Planning Services Inc. grew its holdings in shares of Costco Wholesale by 1.1% during the second quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer's stock worth $2,089,000 after purchasing an additional 23 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in shares of Costco Wholesale by 2.2% in the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer's stock valued at $8,416,000 after buying an additional 182 shares during the period. 68.48% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently issued reports on COST. Bank of America began coverage on shares of Costco Wholesale in a research note on Friday, February 27th. They set a "buy" rating and a $1,185.00 target price for the company. Roth Mkm reissued a "sell" rating on shares of Costco Wholesale in a report on Wednesday, February 4th. Raymond James Financial raised their price objective on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Telsey Advisory Group boosted their price objective on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an "outperform" rating in a report on Thursday, April 9th. Finally, UBS Group upped their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a "buy" rating in a research report on Wednesday, May 20th. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,052.60.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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