Costco Q1 Profit Tops Estimates

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) Wednesday reported higher first-quarter profit, on increased comparable sales and membership fees. Earnings per share topped analysts' estimates, while revenues came in marginally below view.

For the quarter ended November 23, net income attributable to the company increased to $496 million or $1.12 per share from $425 million or $0.96 per share in the previous year. On average, 23 analysts polled by Thomson Reuters expected earnings per share of $1.09 for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew to $26.87 billion from $25.02 billion a year ago, while 21 analysts projected revenues of $26.92 billion.

Net sales increased 7 percent to $26.28 billion from $24.47 billion in the same quarter last year. Membership fees were $582 million, higher than $549 million a year earlier.

Comparable sales improved 5 percent. In the U.S., comparable sales rose 6 percent, and international sales edged up 1 percent.

Excluding negative impacts from gasoline price deflation and foreign exchange, 12-week total comparable sales rose 7 percent, with 7 percent increase in both the U.S., and international comparable sales.

Last week, Costco reported that its comparable sales in November 2014 grew 5 percent, and excluding negative impacts from gasoline price deflation and foreign exchange, total company's comparable sales rose 8 percent.

The firm recorded $9.43 billion in net sales for the month, a seven percent increase from $8.79 billion last year.

Costco currently operates 671 warehouses, including 474 in the U.S., and Puerto Rico, 88 in Canada, 34 in Mexico, 26 in the UK, 20 in Japan, 11 in Korea, 10 in Taiwan, seven in Australia and one in Spain.

Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

COST closed Tuesday's trading at $143.04, up 0.50 percent.