Can COST maintain its EPS momentum into Q4 2025?

**Costco's EPS momentum into Q4 2025 is likely to be maintained but may face some challenges**:

1. **Current Financial Performance**: Costco's recent financial performance has been robust, with strong revenue growth and improved profitability metrics. The company reported a 9% increase in total revenue and a 12% increase in operating income for the second quarter of 2025 compared to the previous year. The diluted EPS for this quarter was $4.02, an increase from $3.92 in the previous year.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|COST|COST.O|Costco Wholesale|2024 Q1|16.612377850162872|3.58|185|
|COST|COST.O|Costco Wholesale|2024 Q2|18.787878787878793|3.92|185|
|COST|COST.O|Costco Wholesale|2024 Q3|29.010238907849818|3.78|185|
|COST|COST.O|Costco Wholesale|2024 Q4|8.847736625514397|5.29|185|

2. **Market Trends and Challenges**: Despite the strong performance, there are some market trends and challenges that could impact Costco's future earnings. The company operates in a highly competitive retail sector, and macroeconomic factors such as inflation and consumer spending patterns can affect its performance. Additionally, the company's reliance on North American markets could expose it to regional risks.
3. **Strategic Initiatives**: Costco has been successful in growing its business through strategic initiatives such as expanding its warehouse locations and enhancing its e-commerce capabilities. The company's focus on cost management and operational efficiency has also been a key driver of its financial performance.
4. **Analyst Forecasts**: Analysts have forecasted a diluted EPS of $5.07 for Costco in Q4 2024, which suggests a positive outlook for the company's future earnings. However, it is important to note that forecasts are based on current market conditions and may not account for potential changes in the market or company performance.
5. **Historical Performance**: Costco has a track record of consistent performance, with EPS growth in previous quarters. This suggests that the company has the potential to maintain its EPS momentum into Q4 2025.

In conclusion, while there are challenges and uncertainties in the market, Costco's strong financial performance, strategic initiatives, and historical performance suggest that the company is well-positioned to maintain its EPS momentum into Q4 2025. However, investors should continue to monitor the company's performance and market conditions closely.