Costco Wholesale Corporation (NASDAQ:COST) announced its operating results for the third quarter (twelve weeks) and first thirty-six weeks of fiscal 2016, ended May 8, 2016.
Net sales for the quarter increased two percent, to $26.15 billion from $25.52 billion last year. Net sales for the first thirty-six weeks increased two percent, to $80.34 billion from $78.67 billion last year.
Comparable sales for the twelve-week and thirty-six-week periods were as follows:
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Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:
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Net income for the quarter was $545 million, or $1.24 per diluted share, compared to $516 million, or $1.17 per diluted share, last year. Net income for the thirty-six weeks was $1.57 billion, or $3.56 per diluted share, compared to $1.61 billion, or $3.64 per diluted share, last year. Net income for the thirty-six-week period last year was positively impacted by $43 million ($0.10 per diluted share) in net nonrecurring income tax benefits.
Costco currently operates 705 warehouses, including 493 in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight in Australia and two in Spain. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom, Mexico, Korea andTaiwan. (Original Source)
Shares of Costco Wholesale closed yesterday at $144.54, up $1.97 or 1.38%. COST has a 1-year high of $169.73 and a 1-year low of $117.03. The stock’s 50-day moving average is $148.78 and its 200-day moving average is $153.00.
On the ratings front, Costco has been the subject of a number of recent research reports. In a report issued on May 24, Piper Jaffray analyst Sean Naughton maintained a Buy rating on COST, with a price target of $171, which implies an upside of 18.3% from current levels. Separately, on May 16, Robert W. Baird’s Peter Benedict reiterated a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Sean Naughton and Peter Benedict have a total average return of 1.3% and 5.9% respectively. Naughton has a success rate of 42.2% and is ranked #1526 out of 3869 analysts, while Benedict has a success rate of 66.7% and is ranked #758.
Overall, 3 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $176.80 which is 22.3% above where the stock closed yesterday.
Costco Wholesale Corp. operates membership warehouses based on the concept that offering members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It operates warehouses in the U.S., Canada, the United Kingdom, Japan and Australia and through majority-owned subsidiaries in Taiwan and Korea.