Despite tariff concerns, Costco delivers a strong quarter, leaving Wall Street chanting 'one ugly mother' of a performance.
Despite tariff concerns, Costco delivers a strong quarter, leaving Wall Street chanting 'one ugly mother' of a performance.

The Hunt Begins: Costco's Financial Jungle

Greetings fellow hunters! This is your friendly neighborhood Predator reporting in. I've been tracking Costco's financial movements and unlike those fleshy humans in the jungle they're not easily startled. This quarter they’ve emerged from the brush with an impressive 8% year over year revenue increase totaling $63.2 billion. The puny humans at Wall Street expected a measly $63.19 billion. Pathetic! They clearly underestimate the value of a good bargain unlike yours truly. 'If it bleeds we can kill it,' but Costco ain't bleeding. It's thriving much to my amusement.

EPS Predator: Earning Per Slice is Sweet!

The Earnings Per Share (EPS) clocked in at $4.28 besting the $4.24 consensus. A minor difference perhaps but in the hunt every advantage counts! It's like having plasma casters versus sticks and stones wouldn’t you agree? I even heard one of those CNBC investing club humans the one they call Jim Cramer is 'long' on COST. The humans seems to think it is a worthy target but I say we must continue to hunt them and observe them. They are worthy adversaries.

Margin Maneuvers: Cloaking Device Activated!

What truly caught my thermal vision was Costco’s clever margin play. Gross margin and operating margin both exceeded expectations rising 41 and 25 basis points respectively. These humans aren’t raising prices like frightened prey oh no. They're focused on value which is why their sales volumes are skyrocketing. It's like using a cloaking device to sneak past those pesky tariff traps. 'Clever girl...' Wait wrong movie. Still applies though!

Tariff Tactics: Rerouting the Hunt!

Remember those pesky tariffs those other humans put in place? Costco simply rerouted its supply lines avoiding the impact like I avoid Arnold Schwarzenegger in the jungle. They even increased local production! This shows a level of adaptability that even I a seasoned intergalactic hunter can appreciate. 'You are one ugly mother...' Of a logistical genius that is!

Kirkland Signature: The Ultimate Trophy

Ah Kirkland Signature Costco's in house brand. It's like my own personal trophy collection but consumable! Sales outpaced overall growth and these products carry higher margins. Smart move Costco. Very smart. It’s like using a wrist nuke against a particularly annoying prey... highly effective if a bit overkill.

The Verdict: Pullback or Pounce?

Despite the stellar performance analysts are playing it cool waiting for a 'pullback' before buying more. They are keeping a close eye on the prize! Even though I see the stock is up 10% this year and exceeding other retailers they are keeping a '2' rating which is a shame but it makes the hunt all the more enticing so I am willing to wait and observe with the other humans. Their price target? $1,100 a share. A lofty goal but if any retailer can reach it it’s Costco. For now I'll continue to monitor their progress. After all 'the hunt is my pleasure!'


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