Analysts Have Mixed Feelings on Costco (COST) Stock Ahead of Q4 Results - TheStreet

NEW YORK (TheStreet) -- Analysts are on "both sides" when it comes to how Costco (COST) - Get Report will perform for the 2016 fourth quarter, the report is due out after Thursday's market close, Zacks.com Momentum Stock Strategist David Bartosiak said on BloombergTV's "Bloomberg Markets" Wednesday afternoon. 

Analysts are expecting earnings of $1.73 per share on revenue of $36.9 billion for the membership-only warehouse club. For the same period last year, Costco reported earnings of $1.73 per share on revenue of $35 billion.

"I've seen revisions to the upside, a few revisions to the downside. But we're looking at about $1.73 for the current quarter," Bartosiak said. 

Whether Costco beats on the top and bottom line will probably not be the big story to come out of tomorrow's report, he claimed. Instead, it will reflect what happened to Nike (NKE) stock today. 

Nike reported an earnings and revenue beat on Tuesday, but the stock was weighed down today because it reported lower-than-expected futures sales. 

"So I think it's all going to be about the future here with Costco. They have some very ambitious numbers for fiscal year 2017 moving forward, and I'm not quite sure they're going to be able to deliver on those and the market may punish them a little bit," Bartosiak explained. 

In conclusion, Bartosiak is not "super bearish" on Costco, but he's also not "as optimistic as the 'bullest of the bulls' if that's a thing," he said.  

(Costco is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)

Image placeholder title

COST

data by

YCharts