Source: Zhitong Finance

$Costco (COST.US)$Results for the third fiscal quarter will be announced on Friday morning Beijing time. According to analyst forecasts compiled by Visible Alpha, analysts expect Costco's third-fiscal quarter revenue to increase 7.9% year over year to $57.89 billion; net profit is expected to increase 25% year over year to $1.63 billion. Diluted earnings per share are expected to be $3.67, compared to $2.93 for the same period last year.

Since sales growth in the previous quarter fell short of analysts' expectations, Costco's stock price plummeted nearly 10% in two days in early March, but the stock price rebounded in the following months and rose to record levels last week. Costco's stock price has risen by nearly 21% since this year, reaching a new high last week. This will be the first financial report since the warehousing retailer changed its chief financial officer for the first time in decades. Richard Galanti, who previously served as chief financial officer for a long time, stepped down in March of this year.

Key Metrics: Number of Members

versus$BJ's Wholesale Club Holdings (BJ.US)$und$Walmart (WMT.US)$Like other warehousing retailers such as its Sam's Club (Sam's Club), Costco also uses a membership system, which helps Costco generate revenue even before customers enter the store. Since 2017, Costco memberships have been divided into two price tiers. The annual fee for “Gold Star” and basic members is $60, and the annual fee for high-end elite membership is $120.

However, Costco's leadership has said several times in recent quarters that the company has passed the average time interval between member price increases, and hinted that it is a question of “when, not whether” membership prices will rise. Investors are likely to keep an eye on Costco to provide more details on the membership pricing plan when announcing earnings.

Analysts expect the number of members to rise slightly to 73.55 million this quarter, up from 73.4 million in the previous quarter and 69.1 million in the same period last year.

Business Spotlight: Partnering with Uber, the first report since the new CFO took office

A few weeks before Costco announced earnings, due to the announcement during the May 15 annual event and$Uber Technologies (UBER.US)$New partnerships have been formed, and the company's market is likely to grow. Costco is already experimenting with delivery services through Uber Eats in test regions such as Texas, and has partnered with Instacart to allow members to order same-day delivery products.

Through the new partnership, Uber Eats users will be able to order Costco products through the app, whether they are Costco members or not, which is an important step for Costco as it cracked down on member sharing last year to protect its members-only shopping experience.

However, Uber says Costco members will get a special discount and can also get 20% off a one-year Uber One membership. Uber One is Uber's subscription service that offers discounted rides and free shipping on Uber Eats orders. Uber said at the press conference that the service will be offered in several US markets and several other countries where Costco operates, and plans to expand further.

On Thursday, Costco will also release its first financial report since the new chief financial officer takes office. Gary Millerchip, former Kroger CFO, took over the position last month. Galanti has been in this position for almost 40 years and will remain with Costco as an advisor until January 2025.

editor/tolk