Costco Non-GAAP EPS of $3.10 misses by $0.06, revenue of $54.44B misses by $240M

• Costco press release (NASDAQ:COST): Q1 Non-GAAP EPS of $3.10 misses by $0.06.
• Revenue of $54.44B (+8.1% Y/Y) misses by $240M.
• Q1 Adj. Comparable sales: U.S. 6.5%; Canada 8.3%; Other International 9.1%; Total Company 7.1%; E-commerce -2.0%.
• Shares -1.48%.

Comments

[mwilson801]

How can it be this much overpriced, miss on everything and still be flat?

[adaret]

@mwilson801 quality company is probably the reason. Loyal customers and good Prices. People love to shop at Costco.

[mwilson801]

@adaret That is not an argument.
ASML is also a quality company with loyal customers, basically since nobody else can produce their machines and chip foundries need to pay whatever they ask.
That is no justification for paying 2 or 3 times what the company is worth: sooner or later, something happens that brings prices down to reality.

[adaret]

@mwilson801 it’s not intended to be an argument. My guess is that it’s more recession resistant and has recurring revenue with memberships and loyalty. Both good companies but technology stocks are having a harder time over the last year. They were overhyped and over recommended. Costco is a steady eddy grower and people will continue to shop there regardless.

Companies may cut back their purchase orders or delay them. ASML clearly got way ahead of itself.

[DividendLand]

I am a big believer in COST despite the miss. On the surface one might think missing estimates is a serious problem. I think one has to dig deeper. Lack of inventory is a problem, and might be an explanation. For example, I have been trying a purchase a refrigerator for my very small kitchen since September. It is on back order. COST won’t let me order the unit until they have a confirmed date when it will be available. This is the case with lots of items, especially big ticket items. The problem is that the parts to complete the manufacture are made in China and China production is severely reduced due to Covid et al. This is a temporary problem but it results in missed estimates. The price drops when people react (rather than try to understand). A buying opportunity is born. GLTA

[Sound Investments]

I think it’s amazing how low of a gross margin Costco has when everything there is so expensive

[johnkenpoe]

@Sound Investments Not their hot dogs, $1.50 or their roasted chicken, $4.99.

[hello909]

@Sound Investments Literally nothing at Costco is expensive.

[Seeking more alpha than you]

@Sound Investments everything in Costco is cheap.

[SPDY84]

This stock is so manipulated because it's being seen as "defensive". Don't care about the price action, but the misses here are huge in terms of what it says about the health of the economy.

[jeffk100]

@SPDY84 exaggerate much? The slowdown in online is easily traced to end of covid. THats it, far from the end of the world. Nice try

[thinkingdna]

Buying opportunity tomorrow morning…

[pommes.soda27]

Costco EV/EBITDA 17,8
Amazon EV/EBITDA 12

Choose your Team 2023

[Darren Prior]

@pommes.soda27 Cheap ain't good and good ain't cheap

[johngainz]

@pommes.soda27 amzn has a ton of depreciation that is a real cost