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Costco’s Q1 Earnings Miss the Mark (COST)

Membership warehouse operator Costco Wholesale Corporation ( COST ) on Thursday posted higher fiscal first quarter earnings, but results missed analyst expectations.

The Issaquah, WA-based company reported fiscal first quarter net income of $320 million, or 73 cents per share, compared with $312 million, or 71 cents per share, in the year-ago period.

Revenue rose 13% from last year to $21.18 billion, partially due to higher gas prices and benefits from foreign exchange rates.

On average, Wall Street analysts expected a much higher profit of 80 cents per share, on better revenue of $21.29 billion.

Costco shares fell $1.97, or -2.3%, in premarket trading Thursday.

The Bottom Line

Shares of Costco ( COST ) have a 1.10% dividend yield, based on last night's closing stock price of $87.47. The stock has technical support in the $80-$81 price area. The stock is trading right near all-time highs and has little overhead resistance.

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 Nasdaq, Inc.

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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.

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