Costco: Q3 Profit Up, Revenue Misses

by Christopher Freeburn | May 24, 2012 10:24 am

Costco (NASDAQ:COST[1]) reported earnings[2] of $386 million during its fiscal third quarter, up 19% from $324 million during the same time last year.

Adjusted EPS for the third quarter was 89 cents, which topped Wall Street’s average forecast of 87 cents, Reuters noted.

Shares of the wholesale chain rose almost 2% in early Thursday trading.

Sales grew 8% during the quarter to $21.85 billion, while membership fees increased 9.2% to $475 million.

The company reported total revenue of $22.3 billion for the third quarter, up 8.2% from last year. That missed analysts’ prediction of $22.85 billion, Reuters noted.

The company maintains 602 warehouse outlets in the U.S., Canada, Japan, Taiwan and Mexico.

Same-store sales increased 5% both in the U.S. and internationally. That was lower than the 7.3% same-store sales rise projected by analysts.

Facing rising costs, Costco boosted membership fees by 10% last year.

Endnotes:
  1. COST: http://studio-5.financialcontent.com/investplace/quote?Symbol=COST
  2. reported earnings: http://www.foxbusiness.com/news/2012/05/24/costco-3q-net-rises-1-margins-improve-revenue-growth-slows/

Source URL: http://investorplace.com/2012/05/costco-q3-profit-up-revenue-misses/
Short URL: http://invstplc.com/1fvqbGf