On October 4, Costco (COST) reported its fourth-quarter results for the period ending on September 2. As expected, the company finished the year on a strong note. The company’s fourth-quarter top line was slightly ahead of analysts’ expectation. The earnings were in-line with the consensus estimate.
However, management’s warning around the “material weakness in internal control” had a negative impact on the stock. Management clarified that there weren’t any misstatements in the company’s financial statements, which should comfort investors.
Analysts expect Costco’s top and bottom-line growth to slow down in 2019. However, they expect the company to grow its sales and earnings at a healthy rate despite facing a tough YoY (year-over-year) comparison. Costco’s value proposition, new warehouse openings, and digital offerings will likely drive its financials.
Overall, Costco had a phenomenal year. The company reported stellar comps growth month-over-month due to industry-leading traffic growth. Costco expanded its offerings, added new brands, and slowly strengthened its digital offerings.