What Can Investors Expect From Costco’s Fiscal Q1 Earnings

The last of the big retail stocks to report on its latest quarterly performance, we’ve outlined the date, how to listen, and what to expect.

Dec. 8, 2020

Few retailers are as iconic as Costco (NASDAQ: COST). Despite its no-frills warehouse aesthetic, the company is the second-largest retailer in the world and much of its success can be attributed to its simplicity and the utmost commitment to low prices.

In the past 5 years, this stock has performed admirably, up more than 120% in that period. 

Like its fellow big-chain retailers, Costco has benefited from COVID-19-related tailwinds, particularly in March when panicked shoppers began to stockpile goods, and similar incidents in recent weeks as COVID cases surge. 

Now, after knockout earnings from the other big names in retail such as Walmart, Target, and Home Depot, Costco has one last report to give before the new year.

When is Costco’s earnings date?

Costco reports earnings for the third quarter of the fiscal year 2021 on Thursday, December 10 at 5:00 pm Eastern Time. 

How can I listen to Costco’s earnings call?

To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Costco’s investor relations page here.

What to expect from Costco’s earnings call

Consensus estimates for Costco’s quarter expect revenue to jump 14.6% year-over-year (YoY) to $42.43 billion, and earnings to rise roughly 18% to $2.02 a share. However, this is down from last quarter’s EPS of $3.51, as COVID-related costs are expected to bite into the company’s revenue leading up to the holiday period.

Costco could beat estimates, however, as its growth strategies, better price management, positive membership trends, and increasing success of its e-commerce business — preliminary reports have this up 86.4% YoY — have been contributing to its strong 2020 performance. 

For its 12-week first quarter ended November 22, 2020, Costco already revealed that it generated net sales of $42.35 billion, which reflects an increase of 16.9% YoY. Again, comparable sales for the quarter under review rose 15.4%, reflecting an improvement of 14.6%, 16.2%, and 18.7% in the United States, Canada, and Other International locations, respectively.

Finally, its status as an “essential retailer,” could continue to help it benefit from a coronavirus-induced spike in demand, especially with U.S. cases on the rise as the days get colder.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.