To The Moon

$Costco(COST)$ is expected to release earnings on 07 Mar 2024 after the market closes (AMC). For this upcoming second-quarter fiscal 2024 results,

Investors focus, same as before will be on comparable store sales, the key metric to gauge the company’s performance. There are several factors that will influencing Costco's performance, such as consumer spending patterns, inflation trends and ongoing strategic initiatives.

If we look at the consumer spending recorded for Dec 2023, there is quite a good increase, and we are also seeing disposable personal income growing.

This might help in the strong renewal rates and membership growth likely to have contributed to sales.

There is a projected of 4.2% growth in comparable sales for the second quarter. Costco has been putting up a customer-centric approach, strategic pricing, merchandise initiatives and an emphasis on memberships. These will likely to have contributed to Costco’s overall performance. We expect total paid members to increase 5.6% in the second quarter.

Technical is showing an uptrend, this is no surprise as we have been seeing pretty good stock price move 2 weeks before its upcoming earning result on 07 Mar 2024 after market close.

Market is expecting an impressive 5.6% jump in net sales and a 4.4% increase in total membership fees. Costco's paid membership base has been witnessing a steady rise, driven by a growing customer base and remarkable renewal rates.

Costco Wholesale Earnings Dates, Upcoming and Historical

COST last reported earnings on 14 Dec 2023 after the market close (AMC). COST shares gained +4.5% the day following the earnings announcement to close at 643.23. Following its earnings release, 83 days ago, COST stock has drifted +18.2% higher.

From the time it announced earnings, COST traded in a range between 639.57 and 769.27. The last price (759.95) is closer to the higher end of range.

In the last reported quarter, Costco's comparable sales performance displayed a diverse picture across regions. The United States witnessed an increase of 2% in comparable sales, while Canada experienced a rise of 6.4%. Costco's performance in Other International locations was robust, with a significant increase of 11.2%. Overall, the company managed to achieve decent growth of 3.8% in comparable sales.

Estimated implied straddle for upcoming earnings is 5.2%. With the overall growth set to be better than last quarter, I think we could be seeing a 3-5% upside move after its earning result.

Summary

Costco should be able to see results from sales, as they have customer-centric approach, strategic pricing, merchandise initiatives and an emphasis on memberships. These should paid off, and shown up in this fiscal second quarter result.

Appreciate if you could share your thoughts in the comment section whether you think Costco would be able to produce a better-than-expected sales growth and hence better revenue and EPS?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.