Costco Earnings: Third Consecutive Quarter of Profit Growth

S&P 500 (NYSE:SPY) component Costco Wholesale Corporation (NASDAQ:COST) reported net income above Wall Street’s expectations for the fourth quarter. Costco Wholesale operates membership warehouses that offer a selection of nationally branded and selected private-label products in categories such as food, appliances, and sporting goods, at low prices.

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Costco Wholesale Corporation Earnings Cheat Sheet

Results: Net income for Costco Wholesale Corporation rose to $609 million ($1.39 per share) vs. $478 million ($1.08 per share) in the same quarter a year earlier. This marks a rise of 27.4% from the year-earlier quarter.

Revenue: Rose 14.3% to $32.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Costco Wholesale Corporation beat the mean analyst estimate of $1.29 per share. It beat the average revenue estimate of $22.11 billion.

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 19.1% and in the second quarter, the figure rose 13.2%.

Revenue has risen for the last four quarters. Revenue increased 8.2% to $22.32 billion in the third quarter. The figure rose 10% in the second quarter from the year earlier and climbed 12.4% in the first quarter from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 88 cents per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 93 cents per share from 91 cents. For the fiscal year, the average estimate has moved up from $3.84 a share to $3.86 over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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