Costco Beats on Earnings, but Revenue Falls Short. — Barrons.com
By Sabrina Escobar Costco (COST.US) topped earnings expectations, but the stock fell in after-hour trading Thursday following the company’s rare revenue miss. The company’s fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion. Total company same-store sales, adjusted for currency and gasoline price fluctuations, rose 5.8% year-over-year. Analysts had predicted they would tick up 5%. Earnings of $3.92 a share were higher than estimates for $3.63 a share. Net income got a boost from a $94 million tax benefit from the deductibility of the $15-per-share special dividend announced last year. Costco’s stock fell 4.6% to $749.63 Thursday afternoon. The stock has gained 19% this year, while the S&P 500 is up 8%. The company — and its stock — have been reliable outperformers over the past couple of quarters, with strong financial results pushing shares to historic highs. And indeed, Costco has given investors a lot to…
Read More “Costco Beats on Earnings, but Revenue Falls Short. — Barrons.com” »