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Costco (COST) Misses Q3 Earnings, Revenues Up 3.2%

Costco Wholesale Corp. COST just released its first quarter fiscal 2017 financial results after the bell, posting earnings of $1.17 and revenues of $28.09 billion. COST is a #3 (Hold) on the Zacks Rank, and is down 0.55% to $153.00 per share in after-hours trading.

Missed earnings estimates . The company reported earnings of $1.17 per share, lagging behind the Zacks Consensus Estimate of $1.19 per share. This number excludes seven cents from non-recurring items.

Missed revenue estimates. The company saw revenues figures of $28.09 billion, also missing our consensus estimate of $28.384 billion but gaining 3.2% year-over-year.

Costco reported total comparable sales for the quarter of 1%. Excluding the impacts from changes in gasoline prices and foreign exchange, total comparable sales were 2%. Membership fees were $630 million in Q1.

Here's a graph that looks at Costco's price, consensus, and EPS surprise:

COSTCO WHOLE CP Price, Consensus and EPS Surprise

COSTCO WHOLE CP Price, Consensus and EPS Surprise | COSTCO WHOLE CP Quote

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.

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


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

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