Costco Wholesale Corporation (NASDAQ:COST) posted its latest quarterly earnings results after the bell Thursday, which topped analysts’ expectations but sent shares sliding.
The retailer unveiled fiscal third-quarter adjusted earnings of $1.70 per share, which was higher than what Wall Street was calling for at $1.68 per share in adjusted earnings. Revenue also topped expectations as it gained 12.1% compared to the year-ago quarter to $32.62 billion, ahead of analysts’ expectations of revenue coming in at $32.07 billion.
This period marks Costco’s fourth consecutive quarter of double-digit revenue growth. The retailer’s comparable sales, which is a closely watched measure that indicates growth in a retailer’s existing sales channel, were on point for the company, gaining 10.2% compared to the year-ago quarter, while its e-commerce business surged 36.8% year-over-year.
The company’s chief financial officer Richard Galanti said in the company’s previous quarterly earnings call in early March that Costco employees would see a portion of a tax-cut windfall, which is slated to come “in the next two months. We’re going to do a little more because we can,” he added.
Two months later, a number of the retailer’s employees emailed The Seattle Times asking about the reported tax-cut related benefit as the details were not given. These workers said they did not receive any pay or benefit increases, or even any indication that these increases were coming.
COST stock fell about 2.5% after the bell Thursday despite the earnings beat.