The stock fell 1.8% to $303.75 a share in post-market trading after the company beat same-store-sales estimates but missed total revenue and missed earnings. The stock had been up 1.6% in the past five days and up marginally in the past month, although it is up 6% year-to-date.
TheStreet founder Jim Cramer forecasted Costco would fall after reporting earnings. Watch his call here.
The sales growth rates were strong, even for Costco, which has usually grows sales at a strong clip, reflecting consumers may still be stocking up during lockdowns.
Here were the results against Wall Street estimates:
- Revenue: $36.45B v. $37.02B (result: +7.3% year-over-year)
- Same-store-sales: +7.8% v. +6%
- Operating Margin: 3.2% v. 3.2% (-1 basis point)
- Earnings per share: $1.89 v. $1.92 (decline)
Costco did not provide commentary to explain the revenue miss against the same-store-sales beat. E-commerce sales rose 66%. Costco said, as expected, wage increases and health-related expenses would weigh on profits. Those costs combined for a 47 cent hit to the bottom line.
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