Costco Earnings Beat Estimates

Costco's earnings were up but comps were flat in the warehouse club's third quarter.

For the third quarter ended May 8, Costco Wholesale Corp. reported net income of $545 million, or $1.24 per diluted share, versus $516 million, or $1.17 per diluted share, in the year-earlier period. Comparable store sales, excluding the impact from fuel and foreign currency price fluctuation, were up 3%.

Costco earnings per diluted share beat a $1.23 analyst average estimate published by MarketBeat, although dollar sales didn't reach the consensus.

Comparable sales from clubs in the United States, wihout fuel and foreign exchange complications, gained 3%, Costco said, while sales in Canada increased 8% and those for other international locations advanced 3%.

Including the fuel and foreign currency fluctuation impact, comps were flat in the U.S., up 1% in Canada and down 2% internationally for a company total of 0%.

Net sales for the quarter increased 2% to $26.15 billion, the company said.

Costco operates 705 warehouse clubs including 493 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain.