Market Minute: Earnings Previews: COST & AVGO
Let’s preview some earnings after the bell!
Costco (COST) reports 2Q25, with Zacks estimates of $4.09 EPS (+10% year-over-year) and revenue of $63.22 billion (+8% year-over-year). The stock is up around 38% year-to-date, hitting an all-time high last month. The options market is implying a move of $38 up or down post-earnings, or about a 3.5% move. Investors typically watch Costco’s membership statistics – particularly with the high price of eggs, COST may be seeing more demand and more signups. Any guidance around tariffs will also be watched closely.
Broadcom (AVGO) has Zacks estimates of $1.50 EPS (+36%) and $14.62 billion in revenue (+22%) for its 1Q25. The options market implies a $15 move, or around 8%. While the stock is up 36% over the past year, it’s seen a plunge since the beginning of 2025, down 17% year-to-date. The stock sprang up 24% three months ago when CEO Hock Tan said AVGO’s top three tech customers would spend $60-$90 billion on A.I. chips in fiscal 2027 but has seen sharp declines in the past two weeks. This could be Broadcom’s chance to turn the trend around.
Tune into the Schwab Network for detailed earnings breakdowns and more!
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