Early Wednesday the largest U.S. warehouse-club retailer, Costco
Wholesale Corporation ( COST ), reported its
fiscal first quarter earnings report, showing a +30% rise in profit
beating Wall Street analysts estimates.
The Issaquah, Washington-based company posted a first quarter
profit of $416 million, or 95 cents per share, up +30% from $320
million, or 73 cents per share, a year ago. This beat analysts
estimates, according to Thomas Reuters, as Wall Street analysts
expected Costco to earn 93 cents per share.
The company's net sales also rose, up +9.6% from the same
quarter last year to $23.2 billion. Analysts expected that Costco
would see revenue of $23.7 billion.
The positive numbers is partially due to membership fee revenue
rising +14.3% to $511 million from the previous year as the company
raised fees for most U.S. and Canadian members by 10% in November
Costco shares were up $1.19, or +1.21%, in premarket trading on
The Bottom Line
Shares of Costco ( COST ) have a 1.12% dividend
yield, based on last night's closing stock price of $98.31. The
stock has technical support in the $94-$95 price area. If the
shares can firm up, we see overhead resistance around the $105-$106
Costco Wholesale Corporation ( COST ) is
not recommended at this time, holding a Dividend.com DARS™ Rating
of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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