Earnings: Increased by 17% to $.71 per share, or $312 million, compared to $.60 per share, or $266 million, in the same period a year ago.
Revenue: Increased 11% to $19.24 billion, compared to $17.3 billion in the prior year.
Actual versus Wall Street Expectations: Earnings of $.71 cents per share beat expectations by $.02 cents. The consensus analyst earnings expectation was $.69 cents per share. Revenues easily surpassed the expected $18.81 billion revenue estimate (Thomson Reuters).
Notable Stats: Sales at all Costco clubs open at least a year climbed 7%.
Sales at international Costco clubs open at least a year climbed 14%.
The trailing P/E ratio for Costco is 18.44 and the forward P/E ratio is 18.44.
The company has increased its cash position to $5.3 billion.
The state of California makes up 26% of Costco’s annual sales.
Did You Hear That? Research analyst Brian Sozzi said, “”By all accounts, Black Friday and the weekend were strong for Costco as consumers bought doorbusters … and again, stocked the pantry for holiday festivities.”
Commentary: Shares of Costco have been rising with the broader market since September. Since the end of August, shares are up over $15. The current share price, as shown below, is above both the 50-day and 200-day moving averages. Shares tested support in October and rose higher since. With an impressive double-digit rise in revenues for the retailer, shares should expect to cool off a bit given the recent rise. Meanwhile, the underlying strength in Costco’s fundamentals is very stable. Costco also pays an annual dividend of 1.2%.
Disclosure: No position in COST.