Shares of Costco Wholesale Corp. slipped slightly in after-hours trading on Tuesday, despite the company’s impressive quarterly results that exceeded Wall Street estimates. Costco shares experienced a 1.5% decline after the regular session, settling at $552.96, following a 1% decrease earlier in the day.
During the fourth quarter, Costco posted a net income of $2.16 billion, resulting in earnings of $4.86 per share. This is a significant increase from the same period last year when net income amounted to $1.87 billion, or $4.20 per share. The quarter’s revenue witnessed notable growth, climbing from $72.09 billion to $78.94 billion.
Analysts were predicting earnings of $4.79 per share on sales totaling $77.72 billion, according to FactSet data. However, Costco outperformed these expectations. Furthermore, sales figures for stores that have been open for a year rose by 1.1%, or adjusted to 3.8% when considering gasoline and currency factors. This surpasses Street estimates of 3.5%.
In terms of yearly performance, Costco’s revenue for the fiscal year reached $242.29 billion, up from $226.95 billion the previous year. Analysts had forecasted revenue of $232.95 billion, indicating that Costco once again exceeded expectations.
Year to date, Costco shares have soared by an impressive 21.1%. Meanwhile, the S&P 500 index has recorded an 11.3% gain during the same period.
These results highlight Costco’s ability to consistently deliver strong financial performance, solidifying its position as a leading player in the wholesale industry.
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