Costco Reports Blowout Quarter, Issues Optimistic Guidance
Costco reported record quarterly earnings beating estimates, and issued optimistic guidance for Q4, boosting investor confidence.
Costco (COST) reported record financial results for the third quarter of fiscal 2025, beating analyst expectations, with revenue of $58.5 billion and earnings per share (EPS) of $4.86. The company also provided optimistic guidance for the fourth quarter, sending shares higher in after-hours trading.
Key Financial Results
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $58.5B | +9.2% |
| Net Income | $2.14B | +12.3% |
| EPS | $4.86 | +11.5% |
Highlights from the Report
Costco attributed the strong growth to a 7.1% increase in same-store sales and an 8.5% rise in membership, bringing total cardholders to 132 million. Lower shipping costs also helped improve margins.
Future Guidance
Costco expects Q4 revenue between $60B and $62B, above the analyst consensus of $59.2B. The company also plans to open 25 new stores in the coming year.
Impact on Stock
Costco shares rose 2.8% in after-hours trading to $785, approaching their all-time high.
What This Means for Investors
The results highlight the strength of Costco's membership-based business model and its ability to grow revenue and earnings despite economic headwinds. However, the stock trades at relatively high valuation multiples.
Frequently Asked Questions
Found this useful? Share it