Is Costco Stock a Buy After Q3 Earnings?
Costco (NASDAQ: COST) announced third-quarter earnings on May 27, and it was another impressive quarter for the international retailer. The company has benefited from a surge in spending since it was deemed an essential retailer in the U.S. at the pandemic's onset.
Fueled by record levels of fiscal stimulus, consumers with limited shopping options have been turning to Costco more than usual. The warehouse club retailer in turn has earned the trust of its members by maintaining inventories of essential items at its famously competitive prices.
Despite delivering solid revenue and earnings growth in the third quarter, Costco stock is down roughly 2% since the company released third-quarter results. Net sales increased by 21.7% from last year, which is better than the 17.5% increase that analysts on Wall Street were expecting. Similarly, Costco reported earnings per share of $2.75, a 45% increase from last year and better than the $2.32 expected by Wall Street.
Source Fool.com
