Costco Rises After Earnings Top Expectations

23 minutes ago

Costco Wholesale (COST) late Thursday reported earnings that beat analysts’ expectations, in its first quarterly results reflecting the impact of its hike in membership fees.

The membership-based retailer saw revenue grow 7.5% to $62.15 billion in its fiscal 2025 first quarter, just above the analyst consensus from Visible Alpha. Net income of $1.8 billion or $4.04 per share was up from $1.59 billion or $3.58 per share a year earlier and exceeded expectations.

Costco’s e-commerce sales increased 13%, while same-store sales were up 5.2% in the U.S. and 5.8% in Canada. 

The quarter marks the first reflecting Costco’s increased membership fees that went into effect in September. However, executives said last quarter that the impact will likely be weighted to the back half of fiscal 2025.

Costco shares recently were up 1.5% at just above $1,000, near an all-time high. The stock is up 52% since the start of the year, far outpacing the S&P 500's gain of around 27%.

–Andrew Kessel

RH Stock Jumps on Outlook Boost, Swing to Profit

1 hr 23 min ago

RH (RH) shares jumped in premarket trading after the luxury home furnishings retailer boosted its full-year outlook and swung to a profit in its fiscal third quarter.

The company is forecasting revenue growth of 6.8% to 7.2% for the full year, up from its previous forecast of growth in the range of 5% to 7% .

For the third quarter, RH posted $811.7 million in revenue, up from $751.3 million in the same period last year. Earnings per share (EPS) at the company formerly known as Restoration Hardware was $1.66, a turnaround from an $0.12 loss a year earlier.

“The positive inflection of our business continued to gain momentum with third quarter demand increasing 13% despite operating in the worst housing market in 30 years,” Chief Executive Officer (CEO) Gary Friedman said in a statement.

Friedman said he doesn’t expect the company’s margins to be hurt by President-elect Donald Trump’s plan to hike tariffs on the U.S.’s key trading partners.

RH shares were 16% shortly before Friday's opening bell.

–Nisha Gopalan

Broadcom Levels to Watch as Stock Soars After Earnings

2 hr 3 min ago

Broadcom (AVGO) shares are sharply higher in premarket trading Friday after the chipmaker reported better-than-expected earnings and issued a rosy outlook amid robust AI-driven sales growth.

The company last Thursday said its fiscal 2024 AI revenue more than tripled, driven by its AI XPUs and Ethernet networking portfolio. CEO Hock Tan told analysts on the company’s earnings call that he anticipates significant AI opportunities over the next three years, adding that he sees accelerators and networking sales in fiscal 2027 ranging between $60 billion and $90 billion.

The stock sits poised to break out from a ascending triangle on Friday, setting the stage for a continuation of the stock's longer-term uptrend.

The bars pattern tool, which extracts the stock’s trend higher from December 2023 to June this year and repositions it from the ascending triangle’s top trendline, forecasts an upside target of around $315.

Investors should watch key support levels on Broadcom's chart during pullbacks near $185 and $140.

Broadcom shares were up 17% at $212 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Stock Futures Point to Higher Open for Major Indexes

2 hr 28 min ago

Futures tied to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures were up 0.4%.

Nasdaq 100 futures were up 0.8%.

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