Shares of Costco Wholesale (COST) are climbing into record territory on Friday, as the market reacted to its upbeat earnings.
Getty Images
The retailer said it earned $1.36 a share in its fiscal first quarter, a penny ahead of analyst estimates, on revenue that rose 13.2% year over year, to $31.81 billion, also above the $31.01 billion consensus.
It said total comparable sales were up 10.5%, easily beating the 7% analysts predicted. Same-store sales were up 10.3% in the U.S. 11.3% in Canada, and 10.1% in other international locations. Ecommerce comps were up 43.5%.
Analysts are weighing in on the report, and Costco got a couple of price target increases. Cowen & Co.'s Oliver Chen reiterated an Outperform rating and raised his target to $214 from $182:
Stifel Mark Astrachan reiterated a Buy rating and raised his price target from $185 to $200:
Elsewhere, Raymond James's Budd Bugatch reiterated an Outperform rating and $202 price target:
Not all analysts are bullish, however. Guggenheim's John Heinbockel reiterated a Neutral rating on the stock:
COST's 1Q operating results modestly exceeded our (and Street) expectations on better-than-expected SG&A leverage, although improvement in membership metrics was the highlight of the print. To be fair, the expense leverage benefited from a 1.5% "calendar" comp lift, which will be reversed in the 2Q, membership metrics remain below historical levels, and consensus expectations may be optimistic in the 2H when the easiest comp compares have been fully cycled.
Jefferies' Daniel Binder reiterated a Hold rating and $186 price target:
Costco has been a bright spot in a dismal retail landscape, and also reported upbeat November sales last week.
The shares are up 4.2% to $194.41 in morning trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
