Costco Wholesale Corporation (COST) has reported better-than-expected results for the fourth quarter of Fiscal Year 2021 on the back of robust top-line growth. The company operates a chain of membership-only big-box retail stores

Revenue in the fourth quarter jumped 17.4% year-over-year to $62.7 billion and surpassed the analyst’s expectations of $61.3 billion. Similarly, earnings of $3.76 per share came ahead of the Street’s expectations of $3.57 per share. The company had posted earnings of $3.13 per share in the year-ago quarter.

Costco ended the quarter with cash and equivalents of $11.3 billion and long-term debt of $6.7 billion. (See Costco stock chart on TipRanks)

On September 20, D.A. Davidson analyst Michael Baker maintained a Hold rating on Costco with a price target of $390 (13.9% downside potential). Baker noted that with multiples below all-time highs, continued expansion moves are less likely for Costco.

Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 4 Holds. The average Costco price target of $470.3 implies 3.9% upside potential from current levels.

COST scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.

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The post Costco's Q4 Results Beat Estimates; Street Says Buy appeared first on TipRanks Financial Blog.

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By: Radhika Saraogi
Title: Costco's Q4 Results Beat Estimates; Street Says Buy
Sourced From: blog.tipranks.com/costcos-q4-results-beat-estimates-street-says-buy/
Published Date: Fri, 24 Sep 2021 11:22:51 +0000

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