Costco Wholesale (COST) - Get Report posted much stronger-than-expected second quarter earnings Thursday but missed Street revenue estimates even as same-store sales over the holiday period were solid.
Costco said earnings for the three months ending on February 17 came in at $2.01 per share, up nearly 27% from the same period and well ahead of the Street consensus forecast of$1.69 per share. Total group revenues, Costco said, rose 7.3% to $35.4 billion but missed analysts' estimates of $35.65 billion. Costco also reported February sales of $10.72 billion, up 5% from last year, or 4.6% on a like-for-like basis, the company said.
Same stores sales for the quarter, excluding fuel and foreign exchange moves, rose 6.7%, Costco said, firmly ahead of the 5.7% consensus estimate. Comparable sales in the US jumped 7.2%, again topping the 6.7% estimate.
Costco shares were marked 4.25% higher in after hours trading following the earnings release, indicating a Friday opening bell price of $225.73 each, a move that would trim the stock's six-month decline to around 7.2%.
Earlier this week, smaller rival BJ's Wholesale Club (BJ) - Get Report posted stronger-than-expected fourth quarter earnings if 44 cents per share, a 22.2% increase from the same period last year, even as sales slipped 3.9% to $3.42 billion.