October 5 Earnings: Costco- Will eCommerce Ware Off Competition?

2017년 10월 3일

Costco reports on Thursday, October 5th after the closing bell.
Heading into earnings, the company has a fairly straight forward R/R portfolio:

- Costco enjoys being a major retailer in the US with a wide array of products in multiple markets.
- The company's eCommerce capabilities are picking up steam and contributing meaningfully to revenue. eCommerce global expansion is aiding sales growth.
- Costco's membership club is expanding and drawing in customers in the US and globally.

- The overall market is a fierce competitive one, with giants like Wal-Mart WMT and Target TGT, among others, fighting for every consumer.
- Consumer spending, although picking up from highs, remains at a sluggish growth rate, hurting industry prospects.

I believe the pros will outweigh the cons for the expected quarter and Costco will beat expectations.

Starting Costco with a $178.00 Price Target for the post-earnings price action.

2017년 10월 5일

노트

Costco reports EPS of $2.08 and REV of $42.3B, beating expectations.
Share are up 1.42% in After Hours Trading.

2017년 10월 17일

노트

Swing position remains.