ISSAQUAH, Wash. – Costco shares rose in after-hours trading after the warehouse club company reported earnings that topped Wall Street expectations.
The Issaquah, Washington-based company said Thursday that net profit in the latest quarter came to $700 million, or $1.59 per share, from $545 million, or $1.24 per share, in the same period last year.
Stripping out one-off items, net profit came to $1.40 per share in the quarter that ended on 7 May; analysts surveyed by Zacks Investment Research predicted $1.31 per share.
The turnover increased by 7.8 percent to $28.86 billion, edging past the $28.65 billion estimate from Zacks’ analysts. Sale and how much members pay annual fees both rose.
A key revenue figure which strips out the impact of brand new stores, rose 5 percent, with stronger growth in Costco’s U.S. stores — 6 percent, compared with the much smaller number of international locations. Of Costco is 732 stores, 510 are in the U. S
An extra boost in the contribution could come in this quarter; a price increase is scheduled to go into effect on 1 June.
Costco Wholesale Corp. shares rose 9 percent since the beginning of the year, while the Standard & Poor’s 500 index rose nearly 8 percent. Shares rose 1 percent to $174.73 Thursday and an additional 1.8 percent after the market closed.
Elements of this story were generated by Automated Insights using data from Zacks investment Research. Access a Zacks stock report on the COSTS https://www.zacks.com/ap/COST
Keywords: Costco, Earnings Report