SoFi CEO enters prepaid forward contract on 1.5 million shares
Investing.com-- Costco posted Thursday better-than-anticipated fiscal third-quarter earnings as inflation-wary consumers continue to bulk-buy goods amid worries about tariff-related price hikes ahead.
Shares in Costco (NASDAQ:COST) traded relatively flat in U.S. premarket trading Friday after the report.
For the 12 weeks ended May. 11, the members-only warehouse retailer reported earnings per diluted share of $4.82 on revenue of $61.96 billion, compared with estimates of $4.24 and $63.11B, respectively.
Comparable sales, including gas and currency changes, increased by 8%.
Bernstein analysts described the performance as a "solid quarter with industry leading merchandising."
"We continue to believe that COST is the highest quality company in our coverage, with multiple decades of global warehouse expansion opportunities ahead. At 53.5x P/E, however, the stock is priced for perfection," analysts led by Zhihan Ma said.
They added that a slowdown in Costco’s strong high-single-digit comparable sales growth trend "could introduce downside risk and provide a better entry point for investors."
Jefferies analysts also shared bullish remarks after the report, reiterating a Buy rating on Costco shares. "Looking ahead, COST should continue to open new
warehouses, drive MFI growth, and maintain a relatively stable margin profile."
(Yasin Ebrahim contributed to this report.)