Costco (COST) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks
07 Mar

Costco (COST) reported $63.72 billion in revenue for the quarter ended February 2025, representing a year-over-year increase of 9%. EPS of $4.02 for the same period compares to $3.71 a year ago.

The reported revenue represents a surprise of +0.79% over the Zacks Consensus Estimate of $63.22 billion. With the consensus EPS estimate being $4.09, the EPS surprise was -1.71%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Costco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Total Company: 9.1% versus the eight-analyst average estimate of 6.6%.
  • Comparable sales - Total Company: 6.8% versus 5.6% estimated by eight analysts on average.
  • Number of warehouses - Total worldwide: 897 compared to the 903 average estimate based on seven analysts.
  • Comparable sales - U.S. 8.3% compared to the 6% average estimate based on five analysts.
  • Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - U.S. 8.6% versus 6.2% estimated by five analysts on average.
  • Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Canada: 10.5% versus 6.9% estimated by five analysts on average.
  • Changes in comparable sales excluding the impact of changes in foreign-currency and gasoline prices - Other International: 10.3% compared to the 7% average estimate based on five analysts.
  • Comparable sales - Canada: 4.6% versus 6.1% estimated by four analysts on average.
  • Number of warehouses - United States and Puerto Rico: 617 versus 620 estimated by four analysts on average.
  • Comparable sales - Other International: 1.7% compared to the 5.7% average estimate based on four analysts.
  • Revenue- Membership fees: $1.19 billion compared to the $1.21 billion average estimate based on 10 analysts. The reported number represents a change of +7.4% year over year.
  • Revenue- Net Sales: $62.53 billion compared to the $62.08 billion average estimate based on 10 analysts. The reported number represents a change of +9.1% year over year.
View all Key Company Metrics for Costco here>>>

Shares of Costco have returned +0.5% over the past month versus the Zacks S&P 500 composite's -3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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