Costco's 3Q EPS Tops Views, Sales Disappoint
Costco (NASDAQ:COST) narrowly beat the Street on Thursday with a 20% jump in fiscal third-quarter profits, but the warehouse-club chain’s sales grew less than analysts had projected.
Shares of Costco ticked higher in the wake of the mixed report.
The company said it earned $459 million, or $1.04 a share, last quarter, compared with a profit of $386 million, or 88 cents a share, a year earlier. Analysts had been calling for EPS of $1.03.
Revenue rose 7.9% to $24.08 billion, trailing the Street’s view of $24.21 billion.
Same-store sales increased 7% overall last quarter. International same-store sales gained 4%, while U.S. growth was at 7%, excluding fuel prices. U.S. total same-store sales were up 6%.
Costco, which operates 627 warehouses around the world, said its membership fees climbed 11.8% to $531 million.
Issaquah, Wash.-based Costco saw its shares gain 0.75% to $113.80 in premarket trading on Thursday, putting them in position to build on their 14.4% rally so far this year.