Costco Wholesale Corp. (COST), the nation's largest largest wholesale club operator, is scheduled to discuss its financial results for the fiscal first quarter 2010 in a conference call Thursday, December 10, at 11:00 AM (ET). Speakers include CFO Richard A. Galanti. You can catch the live webcast of the call on the company's website.
The three months that ended in November saw Costco report strong monthly sales and declare a quarterly dividend. Analysts surveyed by Thomson Reuters expect Costco to report that its earnings fell a nickle per share from a year ago to $0.60 per share. But revenue for the quarter is expected to total $17.3 billion, 5.6% higher than a year ago.
Looking ahead, analysts so far expect to see sequential and year-over-year growth in EPS and revenue in the second quarter. Costco has missed earnings estimates in two of the past four quarters, but beat by eight cents per share in the fourth quarter.
Costco's long-term EPS growth forecast is 13.0%, which is a better than that of competitor BJ's Wholesale Club Inc. (BJ) and Sam's Club operator Wal-Mart Stores Inc. (WMT). Though Costco's earnings multiple is 20x, the consensus recommendation is to buy COST, with a mean price target of $63.11. The Motley Fool likes Costco, but InvestorPlace feels the stock is overvalued.
Shares have pulled back from the recent 52-week high of $61.25 and opened Wednesday at $58.75.
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