Costco's $152M Memory-Inflation Charge and Analyst Reactions After Q4 Beat
COST is trading near its 52-week low of $844.06 (9.1% above the low).
Summary
Costco's Q4 earnings beat was already reported, but this article adds new color: a $152 million LIFO charge driven by memory-cost inflation in electronics, up from $43 million a year earlier. That's a material cost headwind in a key category. Analysts are reacting with mostly lower price targets—Mizuho cut to $1,065 from $1,100, JPMorgan to $1,015 from $1,100, Wells Fargo to $950 from $1,000—while DA Davidson raised to $1,040 from $1,000. RBC sees stable fundamentals but valuation pressure, and Bank of America raised EPS estimates slightly. The stock is up 2.46% on the day, suggesting the market is focusing on the beat and resilient demand rather than the charge. Watch for further commentary on memory costs and margin impact in coming quarters.
At the time of this announcement, COST was trading at $920.69 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $408.3B. The 52-week trading range was $844.06 to $1,096.50. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Benzinga.