Costco 2Q results rise, tops analysts' estimates
ISSAQUAH, Wash. (AP) — Costco's fiscal second-quarter net income climbed 39 percent as it pulled in more money from membership fees, sales improved and it recorded a large tax benefit.
The results beat Wall Street expectations. Its shares rose 2 percent in midday trading.
The wholesale club operator earned $547 million, or $1.24 per share, for the period ended Feb. 17. That compares with $394 million, or 90 cents per share, a year earlier.
The current quarter included a tax benefit of 14 cents per share related to part of the special dividend that the Issaquah, Wash., company paid in December to its 401(k) participants.
Even without the tax benefit, the results beat the $1.06 per share that analysts polled by FactSet expected.
Revenue climbed 8 percent to $24.87 billion from $22.97 billion. Wall Street predicted $24.85 billion.
Costco Wholesale Corp. said Tuesday that revenue from membership fees increased to $528 million from $459 million.
Revenue at stores open at least a year rose 5 percent. The figure also climbed 5 percent in the U.S. and increased 6 percent overseas.
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