Key Takeaways
- Costco Wholesale reported fiscal third-quarter earnings that beat analyst expectations, with profit rising nearly 30% year-over-year.
- Digital growth for Costco was a strong point in the latest quarter, with e-commerce sales rising 20.7% compared with same period a year earlier.
- The warehouse retailer also expanded its partnership with Uber in the quarter, allowing Costco products to be sold and delivered through Uber Eats.
Costco Wholesale (COST) reported fiscal third-quarter earnings after the bell Thursday that surpassed analyst expectations, with sales growing 9% year-over-year, driven by a 20.7% bump in online sales.
The warehouse retailer posted total revenue of $58.52 billion, up just over 9% from the third quarter last year, and above the $57.92 billion analysts had projected, according to estimates compiled by Visible Alpha.
Net income came in at $1.68 billion, up nearly 30% year-over-year. Diluted earnings per share of $3.78 rose from $2.93 in the year-ago period. Both also beat analysts’ projections.
| Q3 2024 | Analyst Estimates for Q3 2024 | Q3 2023 | |
| Revenue | $58.52 billion | $57.92 billion | $53.65 billion |
| Diluted Earnings per Share | $3.78 | $3.68 | $2.93 |
| Net Income | $1.68 billion | $1.63 billion | $1.3 billion |
Investors will hear from Costco’s new chief financial officer (CFO) in the company’s earnings call for the first time Thursday, with former Kroger (KR) CFO Gary Millerchip assuming the role during the latest quarter. Longtime CFO Richard Galanti stepped down from the position in March after a nearly four-decade run as the retailer’s top finance executive.
Costco Broadens Uber Eats Partnership
In the weeks leading up to Costco’s earnings, the company expanded its partnership with Uber Technologies (UBER), with the ridesharing company announcing at an event earlier this month that Costco products could now be sold and delivered through Uber Eats, with the store’s goods available to users whether they have a Costco membership or not.
Uber executives said Costco members would receive special discounts through the Uber Eats app, and would also be able to purchase a discounted Uber One membership, which offers discounts on rides and free Uber Eats deliveries.
Costco traditionally has been protective of its members-only shopping experience, cracking down on membership sharing over the last year, another topic about which executives could provide updates in Thursday’s earnings call.
Costco shares were down 1.8% in extended trading at $800.50 as of 5:30 p.m. ET Thursday following the company’s earnings release.