Costco Wholesale Corporation (NASDAQ:COST) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Costco Wholesale Corporation (NASDAQ:COST) shareholders are probably feeling a little disappointed, since its shares fell 6.3% to US$904 in the week after its latest quarterly results. Revenues of US$64b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.02, missing estimates by 2.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Costco Wholesale after the latest results.

See our latest analysis for Costco Wholesale

After the latest results, the 33 analysts covering Costco Wholesale are now predicting revenues of US$273.7b in 2025. If met, this would reflect a credible 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.3% to US$18.08. Before this earnings report, the analysts had been forecasting revenues of US$272.9b and earnings per share (EPS) of US$18.22 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$1,069, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Costco Wholesale, with the most bullish analyst valuing it at US$1,205 and the most bearish at US$560 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Costco Wholesale's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Costco Wholesale's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. Even after the forecast slowdown in growth, it seems obvious that Costco Wholesale is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$1,069, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Costco Wholesale going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Costco Wholesale you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.