Costco reported adjusted earnings per share (EPS) of $3.92 in the fiscal second quarter, beating estimates of $3.62 and revenue came in at $58.44 billion, up 5.7% year over year but slightly lower than expected.
Digital sales grow more than 18% compared to a year ago, powered by demand for gold bars, silver and appliances.
Same-store sales jumped 5.8%, with US same-store sales growth coming in higher than expected at 4.8%. Canada beat estimates with 9% same-store sales growth, while international stores posted a higher-than-expected increase of 8.2%.
Costco reported adjusted earnings per share (EPS) of $3.92 in the fiscal second quarter, beating estimates of $3.62 and revenue came in at $58.44 billion, up 5.7% year over year but slightly lower than expected.
Same-store sales jumped 5.8%, with US same-store sales growth coming in higher than expected at 4.8%. Canada beat estimates with 9% same-store sales growth, while international stores posted a higher-than-expected increase of 8.2%.
Digital sales grow more than 18% compared to a year ago, powered by demand for gold bars, silver and appliances.
Costco (COST) reported adjusted earnings per share (EPS) of $3.92 in the fiscal second quarter, beating estimates of $3.62.
Revenue came in at $58.44 billion, up 5.7% year over year but slightly lower than expected.
Same-store sales jumped 5.8%, with US same-store sales growth coming in higher than expected at 4.8%.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the title claims that Costco's earnings beat big on the back of sales of gold bars and silver. However, this statement is misleading as it implies that these products were a significant contributor to Costco's revenue when in fact they only accounted for 18% growth in digital sales compared to a year ago.
The article states that Costco once again bulked up its bottom line on the back of gold bars and warehouse-friendly prices on everyday essentials. However, this statement is misleading as it implies that these products were responsible for Costco's revenue when in fact they only accounted for 18% growth in digital sales compared to a year ago.
The title claims that Costco's earnings beat big on the back of sales of gold bars and silver. However, this statement is misleading as it implies that these products were a significant contributor to Costco's revenue when in fact they only accounted for 18% growth in digital sales compared to a year ago.
Fallacies
(75%)
The article contains several fallacies. The author uses an appeal to authority by citing the opinions of analysts without providing any evidence or reasoning for their conclusions. Additionally, the author makes a false dilemma by stating that Costco is either well positioned to continue taking share or not well positioned at current valuations, when there may be other factors at play. The article also contains inflammatory rhetoric in the form of negative language used to describe Wall Street's view on Costco's stock.
The quarter was strong but it’s hard to see the catalyst for the next leg higher at the current valuation.
Costco (COST) issued a mixed earnings report for its fiscal second quarter late Thursday.
Among other retail stocks, Abercrombie & Fitch (ANF) guided high Wednesday after beating lofty expectations for the fourth quarter.
Ross Stores (ROST) gave cautious guidance after easily beating earnings and revenue estimates for the holiday quarter on Tuesday.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, it reports that Costco stock set a new high ahead of the report but slumped in Friday's premarket trade. However, this statement is misleading because it implies that Costco's earnings were not good enough to maintain its price after the report was released. In reality, Costco reported EPS of $3.92 per share and revenue growth of 5.7%, which are positive results but did not meet analyst expectations for both metrics.
Costco stock set a new high ahead of the report
but slumped in Friday's premarket trade.
Fallacies
(75%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing analysts' price target hikes and outlooks for retail stocks without providing any evidence or reasoning behind their predictions. Additionally, the author uses inflammatory rhetoric when describing Costco's stock performance as
Costco Earnings
Dick's Sporting Goods Estimates: Analysts expected Costco to earn $3.62 per share on revenue of $59.11 billion.
Bias
(85%)
The article contains examples of monetary bias and religious bias. The author uses the phrase 'a result of' to describe a negative impact on Costco sales due to the fifty-third week last year, which implies that this is not normal or expected. This could be seen as an example of religious bias because it suggests that there is some sort of divine intervention at play in determining business outcomes.
Costco stock set a new high ahead of the report, but slumped in Friday's premarket trade.
Site
Conflicts
Of
Interest (50%)
The article discusses the earnings of several retail companies including Costco, Abercrombie & Fitch, Ross Stores and Dick's Sporting Goods. The author is Investor's Business Daily which has a financial stake in these companies as they are part of the S&P 500 index.
Costco reported earnings per share (EPS) of $12.98, beating analyst estimates by $3.47 cents.
Costco (COST) reported adjusted earnings per share (EPS) of $3.92 in the fiscal second quarter, beating estimates of $3.62.
Revenue came in at $58.44 billion, up 5.7% year over year but slightly lower than expected.
Same-store sales jumped 5.8%, with US same-store sales growth coming in higher than expected at 4.8%.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing the opinions of experts without providing any evidence or context for their claims. Additionally, the author uses inflammatory rhetoric when describing Costco's performance in terms of revenue and growth, which can be seen as a form of emotional manipulation. Finally, there are several instances where the author presents information out of context to make it seem more significant than it actually is.
The retailer's stock had hit a 52-week high earlier in the day.
Bias
(85%)
The article reports that Costco missed Wall Street's revenue expectations for its holiday quarter despite reporting year-over-year sales growth and strong e-commerce gains. The author also mentions the company's efforts to improve the experience for online shoppers by tweaking their business model and making changes to their website, as well as cracking down on membership sharing during the pandemic.
Costco missed Wall Street's revenue expectations for its holiday quarter
E-commerce sales grew 18.4% in the quarter compared with the year earlier
The company has seen more membership sign-ups as it has cracked down on membership sharing during the pandemic
