Membership-only discount retailer Costco (NASDAQ:COST) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Costco met analysts’ revenue expectations last quarter, reporting revenues of $79.7 billion, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ gross margin estimates.

Is Costco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Costco’s revenue to grow 7.4% year on year to $62.05 billion, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.79 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Costco has missed Wall Street’s revenue estimates five times over the last two years.

With Costco being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for non-discretionary retail stocks. However, there has been positive investor sentiment in the segment, with share prices up 8% on average over the last month. Costco is up 6.5% during the same time and is heading into earnings with an average analyst price target of $972.99 (compared to the current share price of $993.00).

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