Before the opening bell on Thursday, Costco (COST ) posted higher earnings for the second quarter, reflecting benefits from lower fuel costs.
COST's Earnings in Brief
- The retailer reported earnings of $598 million, or $1.35 per share, up from $463 million, or $1.05 per share, a year ago.
- Revenue came in at $26.87 billion from $25.76 billion last year. Comparable store sales rose 2%, while U.S. comps rose 4%.
- On average, analysts expected to see EPS of $1.18 and $27.7 billion in revenue.
According to Richard Galanti, Chief Financial Officer commented: “Net income was positively impacted by a $57 million ($0.13 per diluted share) tax benefit in connection with February’s special cash dividend to the extent received by the Company 401(k) plan participants. In addition, this quarter’s net income was negatively impacted by a $14 million ($0.03 per diluted share) tax charge relating to an ongoing income tax matter.”
The company paid its last quarterly dividend on February 27. We expect COST to declare its next dividend in April, and will likely increase its payout at that time by 10% to 15%.
Shares of COST were up $3.33, or 2.26% during premarket trading Thursday. The stock is up 3.82% YTD.