Skip to main content
Publish date:

Costco Climbs on Earnings Beat, Revenue Rises Double Digits

Costco also reported a nearly 10% year over year increase in same store sales in the fourth quarter.

Shares of big box retailer Costco Wholesale  (COST) - Get Costco Wholesale Corporation Report were rising Thursday after the company reported fourth-quarter results ahead of analyst estimates. 

The Issaquah, Washington company reported net income of $1.67 billion with earnings of $3.76 per share on revenue of $61.44 billion, a 17.5% year over year increase. 

Analysts were expecting the company to report earnings of $3.58 per share on revenue of $61.4 billion for the quarter, according to analysts polled by FactSet. 

Comparable sales for the quarter rose 9.4% company wide, including a 10.3% increase in the U.S. and a 6.7% increase in Canada. 

The company operates 817 warehouses worldwide, including 565 in the U.S. and Puerto Rico, 105 in Canada and 39 Mexico. The company also has warehouses in Japan, the U.K., Korea, Taiwan, Australia, Spain, Iceland, France and China. 

TheStreet Recommends

Costco shares were rising 0.7% to $456 after hours Thursday at last check. 

Costco drew mixed reviews from analysts ahead of its earnings release Thursday with Barclays analyst Karen Short raising her earnings estimate for the company and Oppenheimer analyst Rupesh Parikh saw “limited earnings upside.”

“[While] we expect strong results and continued momentum, the stock does reflect these high expectations,” Short said. “So … despite our favorable view on COST, we believe there could be some risk going into the print.”

Parikh currently has an outperform rating and $500 price target for Costco.

“Following the recent outperformance, we believe the robust and accelerating comparable trends reported in recent months are now reflected in [the] shares,” he wrote.