Costco, Broadcom, Oracle earnings — What to know in markets Thursday

Heidi Chung
Reporter

Investors will be monitoring earnings announcements from Costco (COST), Broadcom (AVGO) and Oracle (ORCL) Thursday after the closing bell.

Costco is expected to report another strong quarter boosted by steady foot traffic at stores and solid same-store sales growth. Analysts polled by Bloomberg expect the big box retailer to report fiscal first quarter adjusted earnings of $1.72 per share on $37.30 billion in revenue. Same-store sales, a key metric for retailers, is anticipated to have risen a healthy 4.7% during the quarter.

One area of potential underperformance could be e-commerce sales. Due to the impact of a later-than-usual Thanksgiving, Costco’s online sales fell 20% in November and dragged down same-store sales by 1.5% for the month.

Shoppers at Costco in Fairfax, Virginia, January 7, 2010. Costco Wholesale Corp on Thursday reported a better-than-expected nine percent rise in December sales at stores open at least a year, helped by an increase in gasoline prices and stronger foreign currencies. REUTERS/Larry Downing (UNITED STATES - Tags: BUSINESS)

Costco has had a pretty impressive year. The stock surged 46% in 2019 and has outperformed both the broader market and its rivals such as Walmart (WMT), which have risen 27% and 30% respectively.

In addition, chipmaker Broadcom will also deliver fiscal fourth quarter earnings after the bell. Broadcom’s chip segment sales are expected to have grown by mid-single digits, while its infrastructure software segment likely rose by low-single digits.

Analysts noted that while Broadcom’s fundamentals remain strong, its earnings announcement Thursday could be a bit messier than usual given the current macro and trade uncertainty. The chipmaker is expected to report adjusted earnings of $5.38 per share on $5.73 billion in revenue.

Broadcom stock has performed solidly over the year with shares up 29%. It is also one of the best-performing stocks of the past decade.

Finally, tech giant Oracle will round out the major earnings reports for the day. Analysts surveyed by Bloomberg expect Oracle to report adjusted earnings of 89 cents per share on $9.65 billion in revenue during its fiscal second quarter. Few surprises are expected, and the previously forecast organic sales growth between 1% to 3% is anticipated to come to fruition. After declining 6% during the first quarter, cloud sales should show improvement, according to analysts.

Following Oracle’s first quarter results, the company also announced that co-CEO Mark Hurd was taking a leave of absence due to health reasons. Hurd died in October at the age of 62. He and Safra Catz were appointed CEOs of Oracle in September 2014.

Notable economic reports scheduled for Thursday include the following: PPI Final Demand month-on-month, November (0.2% expected, 0.4% in October); PPI excluding Food and Energy month-on-month, November (0.1% expected, 0.3% in October); PPI Final Demand year-on-year, November (1.3% expected, 1.1% in October); PPI excluding Food and Energy year-on-year, November (1.7% expected, 1.6% in October); Initial Jobless Claims, week ended Dec. 7 (214,000 expected, 203,000 prior); Continuing Claims, week ended Nov. 30 (1.678 million expected, 1.693 million prior); Bloomberg Consumer Comfort, week ended Dec. 8 (61.7 prior)

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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