Costco Earnings Aren’t Enough for Investors
Costco released its fiscal fourth-quarter financial results after the markets closed on Thursday.
When Costco Wholesale Corp. (NASDAQ: COST) released its fiscal fourth-quarter financial results after the markets closed on Thursday, the company said that it had $2.36 in earnings per share (EPS) and $44.4 billion in revenue. That compared with consensus estimates of $2.36 in EPS and $44.27 billion in revenue, as well as the $2.08 per share and $42.3 billion posted in the same period of last year.
During the quarter, total comparable sales increased 9.5% from last year. This consisted of a 10.8% increase in comparable sales in the United States, a 5.7% increase in Canada and a 6.7% increase in international comparable sales. On a constant currency basis and excluding the impact of gas, comparable sales increased 7.2%.
At the same time, total e-commerce sales increased 26.2% year over year. On a constant currency basis and excluding gas, e-commerce sales were relatively unchanged at 26.3%.
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Costco ended its 2018 fiscal year with 762 warehouses in operation, including 527 in the United States and Puerto Rico, 100 in Canada and 135 other international stores.
On the books, Costco cash, cash equivalents and short-term investments totaled $7.76 billion at the end of the quarter, up from $5.78 billion at the end of the same period last year.
Shares of Costco closed Thursday at $231.68, with a consensus analyst price target of $241.48 and a 52-week trading range of $154.11 to $245.16. Following the announcement, the stock was down over 2% at $225.50 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
