Earnings Updates | Q1 2024

March 14, 2024by toleg.work

Last week, 7 companies from the S&P 500 index reported for Q1 2024..

Costco showed one of the best results. Its revenue amounted to $58.4B. It increased by +1.3% compared to the corresponding value for the previous quarter. Let’s analyze the company’s business in more detail.

Costco is the third largest retailer in the world. The company is ranked 11th in the Fortune 500 list and owns almost 1K stores, of which more than 60% are in the United States.

Costco’s net income increased by +13.3% compared to the same quarter last year. Sales grew by an average of +5.6% (due to an increase of +9.2% in Canada). Costco also opened 1 store in China and 3 in the United States, and 2 of them have a new format – shopping centers for small business partners.

87% of the revenue structure is made up of manufacturing costs, and 13% is gross revenue. Over the past quarter, the company made a profit of $1.3B. Its market capitalization is $348B.

After the publication of the report, Costco stock fell by -7.7% to $725 per share. The market participants reacted negatively to the company’s reporting results, which did not exceed analysts’ expectations.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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