Costco

(COST) - Get Report

reported a 29% jump in third-quarter earnings on a 14% rise in sales, as lower opening costs and an impairment reversal helped the company surpass analyst estimates.

The company, based in Issaquah, Wash., earned $198.7 million, or 42 cents a share, in the three months to May 9, compared with earnings of $153.8 million, or 33 cents a share, a year ago.

Sales were $10.90 billion in the latest quarter compared with $9.54 billion last year, reflecting warehouse sales rising to $10.67 billion from $9.34 billion and membership fees rising to $224.5 million from $198.1 million.

Analysts surveyed by Thomson First Call had been forecasting earnings of 37 cents a share on revenue of $10.57 billion in the most recent quarter. The stock was recently up $1.06, or 2.8%, to $38.50 on the Instinet premarket session.

On the cost side, the company had preopening expenses of $4.6 million in the most recent quarter compared with $5.9 million a year ago, and an $8.5 million reversal of impaired assets and closing costs in the most recent quarter compared with an expense of $6 million a year ago.