Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Costco Wholesale Corporation
Costco will report 4Q FY23 earnings after the markets close on Tuesday, Sep 26, 2023.
The analyst projects EPS growth of 19% to $5.00 versus the FactSet consensus (FS) of $4.79, including a benefit from an extra week.
Sales growth is estimated to be 8.9% to $77.1 billion versus FS at $76.4 billion, with a headline comparable sales of 1.1% and a benefit from an extra week of about 6.0%.
The analyst expects generally inline MFI (Membership Fee Income) growth of 12% to $1.5 billion, reflecting solid member growth of MSD (Mid-Single Digit), helped by new members and renewals as well as benefits from the extra week in the MSD area.
The analyst expects Costco to remain a share gainer, with its value-focused merchandising and high member loyalty (about 125 million members).
In FY24, Costco should generate high-single-digit - low-double-digit EPS growth, driven by an MSD comp, MSD-HSD membership fee income growth, leverage of customer data, and effective management of merchandising and costs.
Price Action: COST shares are trading higher by 1.25% at $563.37 on the last check Monday.
