Membership discount retailer Costco (NASDAQ:COST) will report earnings after the market close tomorrow. Here’s what to expect.

Costco met analysts’ sales expectations in its most recent quarter, reporting revenue of $79.7 billion, flat from a year earlier. It was a satisfactory quarter for the company, significantly exceeding analysts’ gross margin estimates.

Is Costco a buy or sell in terms of profits? Read our full analysis here, it’s free.

Analysts expect Costco’s revenue this quarter to rise 7.4% year-over-year to $62.05 billion, an improvement from the 6.2% increase in the year-ago quarter. Adjusted earnings are expected to be $3.79 per share.

Analysts covering the company have generally reaffirmed their estimates over the past 30 days and expect the company to remain on track toward earnings. Costco has missed Wall Street sales estimates five times in the last two years.

With Costco becoming the first of its peers to report earnings this season, we don’t have to look anywhere else for an indication of how this quarter will pan out for non-discretionary retail stocks. However, there has been positive investor sentiment in this segment, with share prices rising an average of 8% over the last month. Costco is up 6.5% over the same period and is heading toward profitability with an average analyst price target of $972.99 (compared to the current share price of $993.00).

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