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Oct. 3, 2019, 3:20 p.m. EDT

Costco earnings: Texas and Florida alone could get dozens more warehouses and it wouldn’t be enough

Costco stock has rallied 39% for the year to date

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By Tonya Garcia, MarketWatch

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Revenue: FactSet’s outlook is for revenue of $47.45 billion, up from $44.41 billion in 2018.

Estimize is forecasting $47.30 billion.

Costco has already announced same-store sales growth of 5.1%.

Stock price: Costco stock has rallied 42% for 2019 so far, outpacing the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.42%  , which is up 15.8%, and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +2.29%  , up 12.1%.

Read: Walmart takes on Amazon in India with enhancements to Flipkart’s ‘Big Billion Days’

What else analysts are saying:

-Membership fee income continues to grow: UBS analysts think Costco’s membership fee income rose 5.3% in the quarter to $1.05 billion. Analysts also say average members per warehouse grew 1%.

“Looking ahead, we believe that Costco’s top-notch execution and competitive moat should help to support continued, high 80% worldwide renewal rates for the foreseeable future,” UBS analysts led by Michael Lasser wrote in a note headlined “Still Feels Bullish.”

“Further, its international whitespace opportunity is matched by few. The retailer’s recent China opening is just the latest example showing its ability to resonate with customers outside the U.S.”

UBS rates Cost stock buy with a $335 12-month price target.

Large crowds at the Costco opening in China shut down the warehouse early.

Don’t miss: Here are the stocks that have soared and sunk the most in 2019

-Costco will declare a special dividend: Stifel analysts think the retailer will announce a special dividend in the next quarter or two, driving its buy stock rating and $310 price target.

“We anticipate the company will continue to invest in price and digital/e-commerce to further reinforce its value proposition, which we view as key to sustaining favorable comp and traffic trends and continued outperformance relative to peers,” wrote analysts led by Mark Astrachan in a September note.

/zigman2/quotes/210599714/realtime
US : S&P US
3,200.18
+44.96 +1.42%
Volume: 2.16B
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,683.82
+598.02 +2.29%
Volume: 332.67M
July 14, 2020 3:54p
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Tonya Garcia is a MarketWatch reporter covering retail and consumer-oriented companies. You can follow her on Twitter @tgarcianyc. She is based in New York.

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