NEW YORK (TheStreet) -- Shares of Costco Wholesale Corp. (COST) are up 0.97% to $144.43 in pre-market trade after the biggest U.S. warehouse club chain reported first quarter fiscal 2015 profit that topped estimates after sales at its established stores increased, Bloomberg reports.
Net income was up 17% to $496 million, or $1.12 a share, from $425 million, or 96 cents, a year ago, according to the company. Analysts projected $1.09 per share for the fiscal first quarter, according to Bloomberg compiled data.
Sales at Costco stores open a year or more jumped 7%, excluding changes in gasoline prices and foreign-currency exchange rates.
Costco's quarterly sales climbed 7.4% to $26.9 billion, equaling the average analyst estimate, Bloomberg said. Revenue from membership fees gained 6% to $582 million.
"We rate COSTCO WHOLESALE CORP (COST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
- You can view the full analysis from the report here: COST Ratings Report