Retail

Costco Up on Mixed Q4 Earnings

Costco Wholesale Corp. (NASDAQ: COST) reported its fiscal fourth-quarter financial results after the markets closed on Tuesday. The company had $1.73 in earnings per share (EPS) on $35.78 billion in revenue. That compared to Thomson Reuters consensus estimates of $1.66 in EPS on revenue of $36.22 billion. In the same period of the previous year, the company posted EPS of $1.58 and $35.52 in revenue.

The company noted that in this quarter comparable sales were down 1% across the company, primarily driven down by Canada and other internationals. Canada’s comparable sales were down 10%, while all other internationals had a decline in comparable sales by 7%. Comparable sales were up 2% in the United States.

However, comparable sales excluding the negative impacts from gas price deflation and foreign exchange were significantly better. Across the board, comparable sales excluding gas were up by 6%, led by Canada with 7%. Both the U.S. and other international segments had an increase of 6%.

Costco currently operates 686 warehouses, including 480 in the United States and Puerto Rico. The company plans to open up to an additional 12 new warehouses (including one relocation) before the end of calendar year 2015.

On the books, cash, equivalents and short-term investments totaled $6.42 billion, compared to $7.32 billion in the same period from the previous year.

Shares of Costco closed relatively flat, at $143.72 in its 52-week trading range of $117.03 to $156.85. After the earnings were released, shares were up 0.8% at $144.90 in early trading indications Wednesday. The stock has a consensus analyst price target of $155.22.

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