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Costco (COST) Posts Q1 Earnings Beat, E-commerce Sales Up 43.5%

Madeleine Johnson

Costco Wholesale Corp. COST just released its first-quarter fiscal 2018 results, posting earnings, $1.45 per share and revenues of $31.8 billion. Currently, COST is a #3 (Hold) on the Zacks Rank, and is up almost 1% to $188.21 per share in trading shortly after its earnings report was released.

Costco:

Beat earnings estimates. The wholesale retail giant reported earnings of $1.45 per share, surpassing the Zacks Consensus Estimate of $1.35 per share. Net income was $640 million for the quarter.

Beat revenue estimates. The company saw total revenues of $31.8 billion, just beating our consensus estimate of $31.52. Net sales were $31.12 billion, which increased 13.3% year-over-year, while membership fees were $692 million in Q1.

Total company comparable sales increased 10.5%, while e-commerce sales surged 43.5%.

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

Costco Wholesale Corporation Price, Consensus and EPS Surprise

Costco Wholesale Corporation Price, Consensus and EPS Surprise | Costco Wholesale Corporation 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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