For the quarter ended Feb. 16 the Issaquah, Wash., company earned $2.10 a share, up 4.5% from $2.01 in the year-earlier quarter. Analysts surveyed by FactSet were expecting Costco to earn $2.07 a share.
Second-quarter revenue was $39.07 billion, a 10% increase from $35.4 billion a year earlier. Analysts were looking for $38.21 billion.
And same-store sales grew 8.9%, reflecting rises of 9.1% in the U.S., 8.9% in Canada and 7.9% internationally. Analysts were expecting total growth of 6.8%.
Costco shares dropped 13% last week. But they've made back much of those gains this week after Oppenheimer published a note saying that the big-box retailer would benefit from increased traffic as consumers, concerned about the coronavirus outbreak, buy supplies.
Analysts at the firm visited a Costco in Wayne, N.J., 45 minutes northwest of Manhattan, and saw numerous out-of-stock items across the store’s food and health and personal-care segments.
The company currently operates 786 warehouses, including 546 in the U.S. and Puerto Rico and another 100 in Canada.
Costco got mixed reviews ahead of its earnings release. Analysts at Deutsche Bank remained “sidelined due to what we see as full valuation and difficult top-line and margin comparisons ahead.”
Oppenheimer set a $335 price target on the stock, while DB had a $289 price target.
Costco shares at last check were up 0.4%. They closed the regular session Thursday down 1.6% at $315.76.