Costco Gains As Q1 Results Beat Estimates

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Costco Gains As Q1 Results Beat Estimates

Costco Gains 2.1% As Q1 Results Beat Estimates

The retail giant Costco (COST) has published its results for the fiscal Q1, which was higher than the estimates of market players. After better-than-expected Q1 results, the retail giant also issued a special dividend to its shareholders.

After the positive results, the share of Costco Corp (COST) jumped by 2% during Friday's pre-market session. The results of Costco showed $3.68 earnings (diluted share) during Q3, while the revenue was around $57.80 billion.

According to analysts, the company was expected to make $57.73 during the quarter. However, it appears that the actual results of the retail giant were even better than the market expectations.

Comparable sales, which is another important metric, showed an increase of 3.9% during the quarter. Growth in Canada and the USA drove the increase in this metric. If we look at the numbers from Canada and the USA specifically, both showed an increase of 8.2% and 2.7%, respectively.

$15 Dividend Announced By Costco (COST)

The company also announced a $15 special dividend for the investors as the results beat the estimates. The special dividend will be sent to Costco shareholders on 28 December.

On the day of dividend payments, Costco shares may experience a little downside as it is a normal price movement under these situations.

According to the analysts, Costco's results for the fiscal quarter were really strong. At the same time, it also showed that the retail giant has recovered gracefully from the slump it experienced during the pandemic.

Given the strong results, many analysts now believe that Costco's value offering is very strong. In particular, the company is enjoying higher renewal rates, which contributes to the overall revenue.

Another thing going well for Costco is its private label program, which is actually the best if we look at the competition. So, that's also an important factor that could be leveraged to fuel future growth in the company.

The recent results also reflect that Costco's position as a retail giant is still very strong despite the tough competition from new players.

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