S&P 500 retail giant delivers best earnings growth in years | Investor’s business journal

Discount giant Costco (COST) topped earnings and revenue estimates for its fiscal third quarter late Thursday after reporting solid sales results in March and April. Costco shares gained in the buying zone on Thursday thanks to strong results from other discount stores. However, shares fell in late trading.

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Costa’s earnings

Estimates: Analysts expected the wholesale membership retail leader to see EPS rebound 26% to $3.70, FactSet shows. Revenue increased 8% year-over-year to $58.023 billion. Same-store sales increased 6%.

Results: Costco reported EPS of $3.78, up 29% in the quarter ended May 12. This represents the best quarterly earnings growth in years. Revenue increased 9% to $58.515 billion. Same-store sales increased 6.6% and e-commerce sales increased 20.7%.

Perspectives: Analysts expect Costco’s profits to rise nearly 14% for the fiscal year ending in August, with sales up nearly 5%.

Shares of the giant Costco on the S&P 500

Costco shares fell 1.1% in extended trading Thursday. Shares of the S&P 500 giant rose 1.1% to 815.34 in the regular session today. Costco stock is near the top of the 5% buy range after reaching a cup-shaped buy point of 787.08 on May 10. The break came after Costco reported that April sales were up 7% from a year earlier and after it reported that March sales were up 9.4%. The buy zone is heading towards 826.43.

Discount stores are doing well

Walmart (WMT) gained a clear gap on May 16 due to good results and prospects. Walmart shares rose to 65.01 on Thursday, outside of a breakout range above the 60.89 buy point.

The company’s shares have also been boosted by good profits recently TJX (TJX), Ross Stores (ROST) and rival Costco BJ’s Wholesale Club (BJ).

Overall, discount stores are performing well in the face of persistent inflation, including: Objective (TGT) is a notable exception. Walmart’s profits rose 22% last quarter, helped by even higher-income consumers becoming more value-conscious. TJX also saw a 22% increase in EPS last week

Burlington Stores (BURL) crushed early Thursday earnings estimates, with EPS up 61%. Dollar General (DG) also saw a significant increase in customer traffic.

Burlington shares rose 18%, releasing a buy point that helped push rival TJX back into the buy zone. Dollar General fell 8% to its 200-day high.

Costco shares hit a 52-week high on Thursday before the earnings release.

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