"Total reported SSS increased 5%, driven by a better-than-expected 9% U.S. core performance. There was particular strength in fresh food, which saw L-MSD inflation, as well as broad strength in consumer electronics," analysts said.
"An extra vendor funded promotion prior to Thanksgiving provided some lift, but we don't expect a margin hit. Meanwhile, sliding gas prices should be margin accretive even with more aggressive pricing to competitors than usual," analysts noted.
"We are adjusting our Q1 EPS estimate up to $1.16 from $1.11, reflecting strong core comps and a margin benefit in gas," analysts added.
Shares of Costco are down 0.27% to $142.64.
Separately, TheStreet Ratings team rates COSTCO WHOLESALE CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COSTCO WHOLESALE CORP (COST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."