Membership warehouses operator Costco Wholesale Corp. (COST) Thursday reported a higher third-quarter profit, as total revenues grew with a rise in membership fees. Comparable sales increased 5 percent for the period. Earnings per share beat analysts' expectations, while revenues missed view.
In the third quarter, net income attributable to the company increased to $459 million or $1.04 per share from $386 million or $0.88 per share reported last year. On average, 22 analysts polled by Thomson Reuters expected the company to earn $1.03 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose to $24.08 billion from $22.32 billion last year, but came below analysts' estimate of $24.21 billion. Net sales were $23.55 billion, up 8 percent from last year. Membership fees rose to $531 million from $475 million in the preceding year.
Comparable sales increased 5 percent for the period. The company said changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the 12-week period. Excluding these effects, comparable sales grew 7 percent.
Comparable sales improved 6 percent in the US, and was up 4 percent internationally.
For the nine-month period, net income attributable to the company was $1.42 billion or $3.23 per share, higher than $1.10 billion or $2.50 per share a year ago. The company said its net income for the period was positively impacted by a second quarter tax benefit of $62 million or $0.14 per share, in connection with the portion of special cash dividend paid in December 2012 to the company 401(k) plan participants.
Total revenues for the period grew to $72.67 billion from $66.92 billion in the same period last year. Net sales for the thirty-six weeks increased eight percent to $71.10 billion and comparable sales were up 6 percent. Comparable sales increased 6 percent both in the U.S., and internationally.
Costco currently operates 627 warehouses, including 449 in the US, and Puerto Rico, 85 in Canada, 33 in Mexico, 24 in the UK, 15 in Japan, nine in Taiwan, nine in Korea and three in Australia.
The company plans to open up to an additional nine new warehouses prior to the end of its fiscal year on September 1, 2013.
Costco shares closed Wednesday's regular trading at $112.95 on the Nasdaq.
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