COST Edges Marginally Higher After-Hours Following Earnings Beat — Jim Cramer Weighs In

• Costco reported Q3 adjusted earnings per share of $4.93, narrowly beating estimates.
• Revenue came in at $69.15 billion, slightly below expectations.
• US comparable sales, excluding gasoline, rose 6.8%.

Costco Wholesale Corp (COST) shares gained marginally in after-hours trading on Thursday following the company’s fiscal third-quarter earnings report. The retailer beat estimates on adjusted earnings per share but missed on revenue.

In after-hours trading, Costco shares were up 0.13% at the time of writing.

COST Earnings Beat Slightly

Costco’s revenue for the quarter came in at $69.15 billion, slightly below analyst estimates of $69.64 billion, according to Koyfin data.

Adjusted earnings per share, excluding certain items, stood at $4.93, compared with expectations of $4.92. Net income rose to $2.19 billion, up from $1.90 billion in the same period last year.

Costco’s US comparable sales, excluding gasoline, increased by 6.8% for the quarter.

Jim Cramer Reacts to COST’s Post-Earnings Stock Move

Jim Cramer said in a post on X that Costco’s muted stock reaction was driven less by the company’s performance and more by Wall Street’s response. He said that analysts were “bored and listless” and overly focused on minor misses, despite what he described as a “very good” quarter. Cramer added that Costco “did fine,” suggesting the fundamentals remained strong even if the market reaction was subdued.

COST Eyes Tariff Refunds

The company said it plans to return part of the tariff-related costs previously passed on to members and expects to receive tariff refunds in the coming months, according to TheFly, citing comments from its Q3 earnings conference call. It also said membership income rose 7% year-over-year in the third quarter.

The company expects further inflation in several non-food categories, while noting that its supply chain remains generally stable. It added that it is closely monitoring the situation in the Middle East.

Costco Market Share And Pricing Strategy

Costco has gained market share in recent years by offering competitive prices, bulk-pack value and a rotating mix of products that encourages repeat visits. The company also benefits from lower gasoline prices at its stations compared to rivals, helping consumers offset rising fuel costs, according to CNBC.

COST Stock: What Retail Sentiment Says

Stocktwits sentiment on Costco moved into “extremely bullish” territory on Thursday, up from “bullish” a day earlier.

Message volume remained “high,” unchanged over the past 24 hours. Message volume rose 23% over the past seven days and surged over 133% in the past 30 days.

One bullish trader expressed strong confidence in further upside, saying, “There will be sunny days for this stock ahead. It will eventually move higher and higher, and before you know it, the stock is at $1,100 and moving higher,” and added, “Hang in there.”

COST shares have gained nearly 14% year-to-date.