Shares of Costco (NASDAQ: COST) reported Q3 2021 earnings that smashed analysts' expectations. Earnings per share (EPS) rose 45% compared to the year-ago period, while revenue climbed 21.5% year-over-year.

The big-box retailer reported earnings per share of $2.75 in the third quarter, compared to analysts’ estimates of $2.35 per share. Revenue came in at $45.3 billion, beating the expected $43.7 billion. Comparable sales growth was also better-than-expected at 20.6%, compared to analysts’ expectations of 16%.

Still, shares of the company are down 1% as investors have already priced in a beat from COST after witnessing strong quarters from rivals Target (TGT) and Walmart (WMT). It seems like they were looking for an even stronger quarter despite the fact COST smashed analysts’ estimates.

RBC analyst Scot Ciccarelli praised a “nice” beat and a “very strong quarter” that prompted him to raise the price target to $453.00 per share from $425.00 per share. The analyst believes that the company is “extremely well positioned regardless of broader economic trends in 2021.”

“Costco posted another very strong quarter with core comp growth of 15.1% and strong earnings leverage (EBIT margin of 3.7% was 50 bps above our 3.2%E). Stacked comps remain very steady in the low 20%s as we believe consumers continue to spend more time at home, driving elevated grocery sales and discretionary spending. Costco continues to invest in value and is paid back in loyalty,” the analyst said in a memo.

“Impressive” is how Telsey Advisory Group (TAG) analyst Joseph Feldman describes Q3 results from Costco. He also raises the price target to $415.00 per share from $395.00 per share.

“Costco should remain a share gainer, with its solid sales, high membership renewal rates (110MM total members), and square footage growth of LSD. In FY22, Costco should continue to generate solid EPS growth, driven by a MSD comp, MSD-HSD membership fee income growth, healthy digital growth, and lapping COVID-19 related costs. We maintain our Outperform rating and are raising our 12-month price target by $20 to $415, based on applying a P/E multiple of ~36x (up from ~35x to reflect strong trends and execution) to our new FY22 EPS estimate of $11.42,” the analyst said in a note sent to clients.