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Bartosiak: Trading Costco's (COST) Earnings with Options

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On Thursday, March 2nd, Costco (COST - Free Report) will release its second quarter earnings results after the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of A.

Dave will look at Costco’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Costco ahead of earnings.

Costco in Focus

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.

Costco is expected to report earnings at $1.35 a share according to the Zacks Consensus Estimate. Last quarter they missed earnings expectations by -1.68%, missing estimates by -$0.02 a share. They were expected to report last quarter at $1.19 per share. They have an average earnings surprise of -0.83%.

Costco Wholesale Corporation Price, Consensus and EPS Surprise

Costco Wholesale Corporation Price, Consensus and EPS Surprise | Costco Wholesale Corporation Quote

Bottom Line

How should investors play Costco ahead of their earnings report? For insights on the best options trades, then tune in 1:00pm today to see David’s thoughts.

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