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Costco Wholesale Corporation (NASDAQ:COST) 3Q Profit Misses Estimations

Boston, MA 05/29/2014 (wallstreetpr) – A chain of biggest warehouse-club store operator, Costco Wholesale Corporation (NASDAQ:COST) announced a profit for the third quarter that witnessed 3.05% uptick over the last year driven by 7% growth in the top line. However, both earnings per share and revenue fell shy of the Wall Street analysts’ expectations.

3Q Results

The company earned a profit of $473 million for the third quarter, up 3.05% from $459 million in the year earlier quarter while earnings advanced 2.88% to $1.07 a share from $1.04 a share in the year-ago quarter. On average, Street analysts predicted Costco Wholesale Corporation to earn $1.09 a share.

Total revenue of the company grew 7.1% to $25.794 billion from $24.083 billion in the previous year quarter. Analysts expected the company to generate revenues of $25.9 billion.

Total comparable store sales recorded 4% uptick during the third quarter and excluding unfavorable impacts from gasoline price and foreign currency, comparable store sales advanced 6%.

Costco Wholesale Corporation’s net sales were $25.23 billion, up 7% from $23.55 billion, while revenue from membership fees grew 5.65% to $561 million from $531 million in the year-ago quarter.

Similarly, Costco Wholesale Corporation (NASDAQ:COST)’s comparable store sales in the U.S. were 5%, while it was 3% from the international division. Excluding gasoline price and currency impact, comparable store sales advanced 6% in the U.S. and 8% in the international division.

Other Metrics

Costco Warehouse Corporation’s merchandise costs rose 7.21% to $22.55 billion from $21.04 billion, whereas selling, general and administrative costs grew 7.52% to $2.49 billion from $2.31 billion in the previous year quarter.

As a result of increased financial outgo towards merchandise costs and selling, general and administration in terms of percentage compared to the net sales growth percentage, operating income rose only 2.08% to $737 million from $722 million in the year earlier period.

Costco Wholesale Corporation (NASDAQ:COST) had cash and cash equivalents of $5.74 billion at the end of the third quarter apart from short term investments of $1.54 billion.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).



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