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Costco (COST) shares are trading slightly lower as the retailer reported mixed second quarter earnings results in Thursday's after-hours trading.
The company missed Wall Street's profit expectations of $4.11 adjusted earnings per share (EPS), coming in instead at $4.02. However, Costco reported revenue of $63.72 billion, beating analyst expectations of $63.01 billion.
Yahoo Finance Senior Reporter Brooke DiPalma joins Josh Lipton and Julie Hyman on Market Domination Overtime to go over the earnings report.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Sydney Strauss
We have Costco earnings as well, just crossing the wire, and we are seeing the shares pull back about one and a quarter percent. Yahoo! Finance's Brooke DiPalma here to bring us the numbers. Hi, Brooke.
Hello. Good afternoon. Well, certainly, we see shares uh falling just a bit in after hours trading here after the company uh posted a beat on their top line revenue, coming in at $63.72 billion dollars. That was above what Wall Street was expecting of roughly $63 billion. Adjusted earnings per share also coming in at $4.02 versus the expected $4.11. Now some softness that we could be seeing here is that uh we saw that US comp sales came in about 8.6. Estimates were 6.4 so that was a bit better here. But in addition to that, we're also looking at uh comparable sales stores also do better. Membership fee revenue seeing a bit of a pullback. Wall Street have been looking for 1.22 billion. We did see that number coming in at 1.19 billion. Now, membership does make up a good sized portion of their business, but this is a bit of a different story than what we heard from some of their closest competitors. We know that BJ's beat on both the top and bottom line this morning. Uh they, or rather beat on earnings and same store sales this morning with a slight miss on revenue. But they saw strength in traffic. They saw increased basket sizes, strong membership engagement. That's BJ's out this morning, and perhaps a bit of a different tale that we're hearing from Costco. Of course, we'll see more color on what these macro conditions means for the Costco consumer in at five o'clock from uh from the CEO.
Yeah, it'll be really interesting to see where the cost, where the margin or cost pressure was that caused the earnings to miss even when the comps looked pretty strong. Interesting.