Costco Wholesale's (COST) fourth quarter earnings beat analyst estimates on both the top and bottom lines. CFRA Analyst Arun Sundaram says that though gross margins have improved, "wage inflation seems to be a continued issue." When it comes to speculation over whether the warehouse club retailer will raise its membership fees, Sundaram says he's been anticipating one, and now that inflation is coming down, he thinks we could see an increase announced by the end of the year. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
In today's press release, we reported operating results for the fourth quarter of fiscal '23, the 17 weeks ended September 3rd. Reported net income for the 17-week fourth quarter came in at $2.16 billion, or $4.86 per diluted share, compared to $1.868 billion or $4.20 per diluted share in the 16-week fourth quarter last year. In terms of sales, net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4% from $70.76 billion in the 16-week fourth quarter last year.
Costco (COST) delivered earnings and revenue surprises of 3.18% and 0.48%, respectively, for the quarter ended August 2023. Do the numbers hold clues to what lies ahead for the stock?