The company is expected to report a year over year rise in both earnings per share and revenue for the most recent quarter.
Analysts surveyed by Thomson Reuters are anticipating that the membership warehouse retailer will post earnings of $1.66 per share on revenue of $36.33 billion for the quarter ended August 31.
Last year, Costco said its net income for the fiscal 2014 fourth quarter came in at $1.58 per diluted share on net sales of $34.75 billion.
Costco is an Issaquah, WA-based membership warehouse retailer in the U.S., Puerto Rico, Canada, the U.K., Mexico, Japan and several other countries. The company specializes in bulk shopping and offers a variety of products including groceries, indoor and outdoor furniture, electronics and jewelry.
Shares of Costco are down by 0.16% to $145.32 at the start of trading on Monday morning.
Separately, TheStreet Ratings team rates COSTCO WHOLESALE CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COSTCO WHOLESALE CORP (COST) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- COST's revenue growth has slightly outpaced the industry average of 4.3%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- COSTCO WHOLESALE CORP has improved earnings per share by 9.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COSTCO WHOLESALE CORP increased its bottom line by earning $4.66 versus $4.63 in the prior year. This year, the market expects an improvement in earnings ($5.19 versus $4.66).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 9.1% when compared to the same quarter one year prior, going from $473.00 million to $516.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Food & Staples Retailing industry and the overall market, COSTCO WHOLESALE CORP's return on equity exceeds that of both the industry average and the S&P 500.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: COST