Costco Wholesale Corporation
) is slated to report its first-quarter fiscal 2014 results on
Dec 11, 2013. In the last quarter, it posted a negative surprise
of 4.1%. Let's see how things are shaping up for this
Factors this Past Quarter
Costco posted lower-than-expected fourth-quarter fiscal 2013
results, as the rate of increase in sales decelerated. The
warehouse retailer's total revenue climbed 0.8% to $32,487
million from the prior-year quarter, but fell short of the Zacks
Consensus Estimate of $32,702 million. Moreover, the top-line
growth rate narrowed to 0.8% in the reported quarter from 7.9% in
the third quarter of fiscal 2013.
Our proven model does not conclusively show that Costco is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP for Costco is -0.98%. This is because the Most Accurate
estimate stands at $1.01, while the Zacks Consensus Estimate is
pegged at $1.02.
Zacks Rank #3 (Hold):
Costco's Zacks Rank #3 (Hold) lowers the predictive power of ESP.
The Zacks Rank #3 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Barnes & Noble, Inc.
), Earnings ESP of +27.12% and a Zacks Rank #2 (Buy).
), Earnings ESP of +7.14% and a Zacks Rank #2 (Buy).
Five Below, Inc.
) has an Earnings ESP of +1.82% and a Zacks Rank #3 (Hold).
BARNES & NOBLE (BKS): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
MARINEMAX INC (HZO): Free Stock Analysis
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