Costco Wholesale Q4 Profit Up 10%, Beats View; But Revenues Miss

(RTTNews) - Membership warehouses operator Costco Wholesale Corp. (COST) on Tuesday reported a 10 percent increase in profit for the fourth quarter from last year on higher revenues, while comparable sales declined for the second straight quarter due to a stronger U.S. dollar and lower fuel prices.

Adjusted earnings per share for the quarter beat analysts' expectations, while revenues missed their estimates.

For the fourth quarter, net income attributable to Issaquah, Washington-based Costco was $767 million or $1.73 per share, up from $697 million or $1.58 per share in the year-ago period.

On average, twenty six analysts polled by Thomson Reuters expected the company to report earnings of $1.66 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased to $35.78 billion from $35.52 billion in the previous year. Analysts had a consensus revenue estimate of $36.22 billion for the quarter.

Net sales for the quarter rose to $34.99 billion from $34.75 billion in the year-ago period.

Total comparable sales for the quarter decreased 1 percent, including the negative impacts from gasoline price deflation and foreign exchange. In the U.S., comparable sales rose 2 percent, while comparable sales in Canada decreased 10 percent and other international comparable sales declined 7 percent.

Excluding the negative impacts from gasoline price deflation and foreign exchange, total comparable sales for the quarter rose 6 percent. This reflects a 6 percent increase in the U.S., 7 percent increase in Canada and another 6 percent growth in other international comparable sales.

Costco currently operates 686 warehouses, including 480 in the U.S. and Puerto Rico, 89 in Canada, 36 in Mexico, 27 in the UK, 23 in Japan, 12 in Korea, 11 in Taiwan, seven in Australia and one in Spain. The company also operates e-commerce web sites in the U.S., Canada, the United Kingdom and Mexico.

Costco said it plans to open up to an additional 12 new warehouses, including one relocation, before the end of calendar year 2015.

COST closed Tuesday's regular trading session at $143.72, up $0.17 or 0.12 percent on a volume of 2.51 million shares. However, in after-hours, the stock declined $1.72 or 1.20 percent to $142.00.