Costco Q4 EPS Expected at $6.48 as Warehouse Count Rises to 940
Analysts project Costco's Q4 revenue at $94.82 billion, with adjusted comparable sales expected to grow 6.5% globally.
Key points
- Costco's Q4 EPS is expected to be $6.48, a 10.4% increase from the prior year.
- Global comparable sales are projected to grow to 8.1%, up from 5.7% a year ago.
- The total number of warehouses is expected to reach 940, up from 914 previously.
Wall Street consensus places Costco's fourth-quarter earnings at $6.48 per share, representing a 10.4% year-over-year increase. Total revenue is projected at $94.82 billion, up 10.1% from the same period last year. These figures, highlighted in recent Yahoo Finance coverage, reflect a modest 0.2% upward revision in EPS estimates over the past month.
The company's global footprint is expected to expand, with the total number of warehouses reaching 940, up from 914 a year ago. This growth is driven primarily by the U.S. and Puerto Rico, where the warehouse count is estimated at 647, compared to 629 in the prior year. The increase in physical locations supports the broader revenue outlook for the quarter.
Global Sales Growth Accelerates
Comparable sales for the total company are forecast to rise to 8.1%, a significant jump from the 5.7% recorded in the year-ago quarter. Excluding the impact of foreign currency and gasoline prices, adjusted comparable sales are estimated at 6.5%, slightly higher than the 6.4% seen previously. This indicates that underlying demand in the core markets is strengthening despite macroeconomic headwinds.
In the United States, comparable sales are projected at 6.8%, up from 5.1% in the same quarter last year. Adjusted U.S. comparable sales, which strip out volatile factors, are expected to reach 6.9%, compared to 6.0% previously. The domestic market remains the primary driver of the company's overall sales expansion.
Canadian Performance Lags Prior Year
Canada presents a different trend, with adjusted comparable sales estimated at 4.8%, down from 8.3% in the year-ago quarter. This decline suggests that growth in the Canadian market has slowed relative to the previous period. Despite the dip in growth rates, the absolute sales volume remains a critical component of Costco's international revenue base.
Estimate Revisions Signal Confidence
The slight upward adjustment in EPS estimates over the last 30 days suggests that analysts are maintaining a positive outlook on Costco's operational execution. While the magnitude of the revision is small, the direction aligns with the projected increases in both revenue and comparable sales. Investors are watching these metrics closely to gauge the company's ability to maintain growth amid shifting consumer spending patterns.
