{"id":57123,"date":"2025-12-11T17:38:22","date_gmt":"2025-12-11T21:38:22","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/earnings-season-heats-up-costco-and-broadcom-beat-lululemons-mixed-results-and-ceo-transition-markets-close-mixed\/57123\/"},"modified":"2025-12-11T17:38:22","modified_gmt":"2025-12-11T21:38:22","slug":"earnings-season-heats-up-costco-and-broadcom-beat-lululemons-mixed-results-and-ceo-transition-markets-close-mixed","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/earnings-season-heats-up-costco-and-broadcom-beat-lululemons-mixed-results-and-ceo-transition-markets-close-mixed\/57123\/","title":{"rendered":"Earnings Season Heats Up: Costco and Broadcom Beat, Lululemon&#8217;s Mixed Results and CEO Transition, Markets Close Mixed"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Costco (<a href=\"\/stock\/COST\">COST<\/a>)<\/strong> and <strong>Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>)<\/strong> both reported <strong>strong quarterly earnings<\/strong> that surpassed analyst expectations, with Broadcom also providing an optimistic Q1 revenue outlook.<\/li>\n<li><strong>Lululemon (<a href=\"\/stock\/LULU\">LULU<\/a>)<\/strong> delivered a <strong>Q3 earnings beat<\/strong> on revenue and EPS, but its <strong>Q4 guidance fell below estimates<\/strong>, overshadowed by the announcement of <strong>CEO Calvin McDonald&#39;s departure<\/strong>.<\/li>\n<li>U.S. equity markets closed mixed, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> surging over <strong>650 points (1.35%)<\/strong>, while the <strong>Nasdaq Composite<\/strong> saw a slight decline of <strong>0.28%<\/strong>.<\/li>\n<li>The <strong>Federal Reserve Board<\/strong> reappointed its Bank Presidents and First Vice Presidents for new five-year terms, signaling continuity in leadership.<\/li>\n<\/ul>\n<p>Major U.S. companies <strong>Costco (<a href=\"\/stock\/COST\">COST<\/a>)<\/strong>, <strong>Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>)<\/strong>, and <strong>Lululemon (<a href=\"\/stock\/LULU\">LULU<\/a>)<\/strong> released their latest quarterly earnings reports today, presenting a mixed picture for investors. While <strong>Costco<\/strong> and <strong>Broadcom<\/strong> delivered strong results exceeding analyst expectations, <strong>Lululemon<\/strong> reported a beat on Q3 but issued a cautious Q4 outlook and announced a significant leadership change. Meanwhile, U.S. equity markets ended the day with varied performance.<\/p>\n<h2>Strong Performance from Costco and Broadcom<\/h2>\n<p>Wholesale giant <strong>Costco (<a href=\"\/stock\/COST\">COST<\/a>)<\/strong> reported a robust first quarter, with <strong>earnings per share (EPS)<\/strong> of <strong>$4.50<\/strong>, comfortably beating the estimated <strong>$4.28<\/strong>. Total revenue also surpassed forecasts, reaching <strong>$67.31 billion<\/strong> against an estimate of <strong>$67.07 billion<\/strong>. The company&#39;s comparable sales, including gas and foreign exchange, rose <strong>6.4%<\/strong>, exceeding the <strong>5.84%<\/strong> estimate, demonstrating solid growth.<\/p>\n<p>Similarly, semiconductor and infrastructure software company <strong>Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>)<\/strong> posted strong fourth-quarter results. Adjusted net revenue came in at <strong>$18.02 billion<\/strong>, higher than the <strong>$17.47 billion<\/strong> estimate. Its semiconductor solutions revenue reached <strong>$11.07 billion<\/strong>, beating the <strong>$10.74 billion<\/strong> estimate. Adjusted EPS was <strong>$1.95<\/strong>, surpassing the <strong>$1.87<\/strong> consensus. Looking ahead, <strong>Broadcom<\/strong> anticipates first-quarter revenue of approximately <strong>$19.1 billion<\/strong>, exceeding the estimated <strong>$18.48 billion<\/strong>, signaling continued momentum.<\/p>\n<h2>Lululemon&#39;s Mixed Bag: Beat on Q3, Soft Q4 Guidance, and CEO Transition<\/h2>\n<p>Athletic apparel retailer <strong>Lululemon (<a href=\"\/stock\/LULU\">LULU<\/a>)<\/strong> announced third-quarter earnings that largely beat expectations, but its forward guidance and a leadership change introduced uncertainty. The company reported net revenue of <strong>$2.57 billion<\/strong>, topping the <strong>$2.48 billion<\/strong> estimate, and EPS of <strong>$2.59<\/strong>, significantly higher than the <strong>$2.22<\/strong> forecast. Gross margin also showed strength at <strong>55.6%<\/strong>, beating estimates.<\/p>\n<p>International comparable sales surged <strong>18%<\/strong>, outperforming expectations. However, comparable sales in the Americas declined <strong>5%<\/strong>, missing estimates. For the fourth quarter, <strong>Lululemon<\/strong> projects net revenue between <strong>$3.50 billion<\/strong> and <strong>$3.59 billion<\/strong>, with EPS between <strong>$4.66<\/strong> and <strong>$4.76<\/strong>. Both figures came in below the consensus estimates of <strong>$3.59 billion<\/strong> for revenue and <strong>$4.97<\/strong> for EPS. Adding to the news, CEO <strong>Calvin McDonald<\/strong> is set to step down, with a succession plan actively underway.<\/p>\n<h2>Market Performance and Economic Calendar<\/h2>\n<p>U.S. equity markets concluded the trading day with a mixed performance. The <strong>Dow Jones Industrial Average<\/strong> saw a significant gain, closing up <strong>650.12 points (1.35%)<\/strong> at <strong>48,707.87<\/strong>. In contrast, the <strong>Nasdaq Composite<\/strong> experienced a slight dip, closing down <strong>65.89 points (0.28%)<\/strong> at <strong>23,588.26<\/strong>. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> posted a modest gain, unofficially closing up <strong>12.46 points (0.18%)<\/strong> at <strong>6,899.14<\/strong>.<\/p>\n<p>In other economic news, the <strong>Federal Reserve Board<\/strong> unanimously approved the reappointment of its Fed Bank Presidents and First Vice Presidents. These new five-year terms are set to commence on March 1, ensuring continuity in leadership after a comprehensive review. Investors are also looking ahead to February 10, 2026, when the <strong>BLS<\/strong> is scheduled to release the U.S. Import and Export Price Indexes for December 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Costco (COST) and Broadcom (AVGO) both reported strong quarterly earnings that surpassed analyst expectations, with Broadcom also providing 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