Costco Reports +30% Rise in Q1 Profits, Beating Estimates (COST)

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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 of 2011.

Costco shares were up $1.19, or +1.21%, in premarket trading on Wednesday.

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 price levels.

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 .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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