Mixed Picture From Costco as 3Q EPS Beats, Sales Disappoint
Costco (NASDAQ:COST) narrowly beat the Street on Thursday with a 19% jump in fiscal third-quarter profits, but the warehouse retailer’s sales growth came in shy of expectations.
Shares Costco ticked more than 1% higher in the wake of the mixed report.
The company said it earned $386 million, or 88 cents a share, last quarter, compared with a profit of $324 million, or 73 cents a share, a year earlier. Analysts had called for EPS of 87 cents.
Revenue increased 8.2% to $22.32 billion, trailing the Street’s view of $22.85 billion.
Same-store sales rose 5% both overseas and at home. Excluding fuel sales and currency fluctuations, Costco said U.S. same-store sales grew 4%, compared with 8% internationally.
Costco, which operates 602 warehouses around the world, said it plans to open six new warehouses by September 2.
Shares of Costco gained 1.84% to $84.84 in premarket activity Thursday morning. The shares closed virtually flat on the year on Wednesday.