Costco Wholesale Corporation ($COST) Earnings (Q2 FY22)

 Costco Wholesale Corporation ($COST) Earnings and Opinion:


Costco Wholesale Corporation ($COST) is a company in the Consumer Defensive sector and operates in the Discount Stores industry. The company is mainly based out of the United States, but has stores all around the world. Costco was founded in 1976 and is currently headquartered in Issaquah, Washington. The stock was first publicly traded in 1985. 

Costco Wholesale Corporation EPS and Revenue (Q2 FY22): 

  • EPS of $2.92 beating expectations of $2.67
  • Revenue of $51.9B beating expectations of $51.31B 
  • EPS was up 36.45% (YOY) and Revenue was up 15.94% (YOY)
Costco Wholesale Corporation Net Income (Q2 FY22):
  • Net Income attributable to Costco was $1.3B 
  • Net Income was up 36.59% (YOY)
Opinion:
Costco Wholesale Corporation has declined after reporting earnings after the markets closed today. Although they beat EPS and Revenue estimates by a good amount, investors were worried about same-store sales growth slowing down. Costco has always been one of my favorite stocks in this sector and will continue to be for a long time. They reported Net Income after taxes of $1.3B, which is a lot in a single quarter. That amount was up 36.59% (YOY). Costco is a company that has shown a solid growth track in the duration of its life on the stock market. I really am confused on why investors took this the wrong way, I really liked this earnings report. I truly think it shows how much of an industry leader Costco is and how well their business model works. Personally, I do not hold a position in Costco, but I have been keeping a close eye on them for a while. The stock definitely turns people away because of how high the share price is. I will guarantee you, holding a position in this company is worth it. They currently pay a pretty low dividend, so it is not a company you want to invest in if you're looking for income. However, I think it is a company that you can invest in and gain a pretty decent return over time. 


*Information attained from Yahoo Finance and Costco
*Estimates attained from Zacks

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