Company Update (NASDAQ:COST): Costco Wholesale Corporation Announces Fourth Quarter and Fiscal Year 2016 Operating Results

Costco Wholesale Corporation (NASDAQ:COST) announced its operating results for the 16-week fourth quarter and the 52-week fiscal year ended August 28, 2016.

Net sales for the fourth quarter were $35.73 billion, an increase of two percent from $34.99 billion in fiscal 2015. Net sales for the fiscal year were $116.07 billion, an increase of two percent from $113.67 billion last year.

Comparable sales were as follows:

      16 Weeks   52 Weeks  
  U.S.   -1 %   1 %  
  Canada   2 %   -3 %  
  Other International   -2 %   -3 %  
    Total Company   0 %   0 %

Comparable sales for these periods excluding the negative impacts from gasoline price deflation and foreign exchange were as follows:

  16 Weeks   52 Weeks  
  U.S.   2 %   3 %  
  Canada   5 %   8 %  
  Other International   1 %   4 %  
    Total Company   3 %   4 %

Net income for the fourth quarter was $779 million, or $1.77 per diluted share, compared to $767 million, or$1.73 per diluted share, last year.

Net income for the fiscal year was $2.35 billion, or $5.33 per diluted share, compared to $2.38 billion, or $5.37per diluted share, last year. Net income last year was positively impacted by a $57 million ($.13 per diluted share) tax benefit in connection with a second-quarter special cash dividend.

Costco ended its 2016 fiscal year and currently operates 715 warehouses, including 501 in the United States andPuerto Rico, 91 in Canada, 36 in Mexico, 28 in the United Kingdom, 25 in Japan, 12 in Korea, 12 in Taiwan, eight inAustralia and two in Spain. The Company plans to open up to an additional nine new warehouses (including one relocation) before the end of calendar year 2016. Costco also operates e-commerce web sites in the U.S.,Canada, the United Kingdom, Mexico, Korea and Taiwan. (Original Source)

Shares of Costco Wholesale are up 1.5% to $149.65 in after-hours trading. COST has a 1-year high of $169.73 and a 1-year low of $138.57. The stock’s 50-day moving average is $159.12 and its 200-day moving average is $155.96.

On the ratings front, COST stock has been the subject of a number of recent research reports. In a report issued on September 26, Cowen analyst Oliver Chen reiterated a Buy rating on COST. Separately, on the same day, J.P. Morgan’s Christopher Horvers reiterated a Buy rating on the stock and has a price target of $179.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Oliver Chen and Christopher Horvers have a total average return of 1.5% and 6.7% respectively. Chen has a success rate of 38% and is ranked #1650 out of 4181 analysts, while Horvers has a success rate of 60% and is ranked #560.

The street is mostly Bullish on COST stock. Out of 13 analysts who cover the stock, 10 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $176.29, which implies an upside of 18.2% from current levels.

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. The company warehouses present exclusive product category selections to be found under a single roof, which include appliances, auto and tires, baby, kids and toys, clothing and handbags, computers and printers, electronics, food and gift baskets, funeral, furniture, gift cards, tickets & floral, hardware health & beauty, home & decor, jewelry & watches, office products, patio, outdoor & pets, sports & fitness, travel & luggage. It also provides ancillary and other services that include gas stations, pharmacy, food court, optical, one-hour photo, hearing aid and travel.


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