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Costco Beats On Fees; Big Lots Reports; Krispy Kreme’s Hole-y Grail

Dan Berman
Hot Stock Minute
Costco Beats On Fees; Big Lots Reports; Krispy Kreme’s Hole-y Grail

First up is Costco (COST) which just reported quarterly results this morning. The big box club beat earnings estimates by a penny posting $1.04 per share. It missed slightly on revenue, but there's not much to complain about here. Profit was actually up 19% from a year ago. The jump came from an increase in membership fees. The company has been raising those fees while lowering prices up and down its enormous aisles. Looking at a chart, Costco stock is up 31% over the past year and set a new 52-week high on Tuesday.

Also out with earnings this morning is discounter Big Lots (BIG). The numbers were right in line with estimates. The company says it made 61-cents a share excluding items on $1.3-billion in revenues. The Ohio-based chain began a push into Canada in recent months. It also opened 14-new stores in the U.S. Big Lots is up 36% year-to-date, though when you look at the last 52-weeks, it's risen only about 3%.

Now we look at Avago Technologies (AVGO), a semiconductor company based in Singapore. It has been up more than 4% in early trading. The company posted earnings of 61-cents a share after yesterday's closing bell when estimates had been for 52-cents. Avago also beat on revenues and says it expects growth between 6% and 9%. Shares of the company have not been moving in tandem with the market at all, and prior to this morning were up 6% for the year.

Finally, word about to get 'round for Krispy Kreme Doughnuts (KKD). The former Wall Street darling reports earnings this afternoon. Analysts are expecting the company to post 17-cents a share on almost $116-million in revenue which would be a significant improvement over last year. The company currently has a market cap under $1-billion, but still makes a lot of dough with about 750-locations in 22-countries, not to mention its product placement in 10,000 other stores. The stock is currently trading at less than 1/3 of its all-time high set back in the summer of 2003. But recently management seems to have found a "hole-y grail" with the stock up 39% this year.