Costco's Q1 2024 Earnings: Membership Fees And Special Dividends In Focus
Portfolio Pulse from Surbhi Jain
Costco Wholesale Corp (NASDAQ:COST) is set to report Q1 2024 earnings with a focus on potential membership fee hikes and special dividends. Analysts expect $3.41 EPS and $57.7 billion in revenue. Costco's business model relies on membership fees and high renewal rates rather than sales margins. The last membership fee increase was in June 2017, and the last special dividend was in December 2020. Analysts rate COST as a Buy, but the current price is at the average price target. Recent analyst ratings from Stifel, Truist Securities, and Telsey Advisory Group have set targets ranging from $615 to $625. Costco's stock closed 2.1% higher at $623.86 on Monday.

December 12, 2023 | 2:26 pm
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Costco is expected to report strong Q1 2024 earnings with a focus on membership fee hikes and special dividends. Analyst consensus rates the stock as a Buy, but the current price is already at the average target, suggesting limited upside.
While the anticipation of a membership fee hike and a special dividend could be positive for investor sentiment, the stock is currently trading at the average analyst price target, indicating that the potential for short-term price appreciation may be limited unless the earnings significantly exceed expectations or additional positive news is announced.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100