Costco (NASDAQ:COST) Looks Forward to a Good 2015


Costco Wholesale Corp. (NASDAQ:COST) released its Q1 report for the fiscal 2015, before market opened on Wednesday. The wholesaler posted the quarterly diluted EPS of $1.12 on total revenue of $26.28 billion. A year ago, the figures posted for the same period stood at $0.96 EPS on revenue worth $24.47 billion. These match quite closely with the Thomson Reuters estimates of $1.09 EPS at $26.92 billion revenue.

Sales in same-store category went up 6% in the first quarter of the fiscal 2015, in the US. In the same category, a 1% increase was observed on global level. Combined with gasoline sales, the total same-store sales sum up 5%. The same-store sales in the US went up 7%, after exemption of gasoline sales and effects of currency exchange. International sales as well as combined sales also went up 7% each, with same exempts. An added advantage that Costco (NASDAQ:COST) offers its customers is that if the lower cost gasoline fill ups prior to shopping leaves rest of the consumer cash free to be spent on the spree at the wholesalers.

In other reported figures, the revenue for membership fee went up to $582 million from $549 million year-over-year. The operating income has increased by $102 million and has taken up the value to $770 million from the previous $668 million.

Costco (NASDAQ:COST) hasn’t released any guidance figures for the next quarter, however analysts have agreed on some estimates for the second quarter of the current fiscal year. The estimated EPS has been placed at $1.18 on $26.92 billion revenue. The overall estimate for the fiscal 2015 has placed EPS at $5.17, on $120.78 billion revenue figures.

A total of 671 Costco (NASDAQ:COST) warehouse stores are currently operational on international level. That’s seven more stores since 2014 Q4 end. Of these 469 are functional in US. The company had promised opening up eight more stores on various global locations, before the year is out. It seems that Costco (NASDAQ:COST) is quite close to that target.

The product costs have increased by almost 7%. The SG&A expenses have also gone up by nearly 8%. In order to balance out increase in costs, the revenue for membership fee increased 6%, summing up at $770 million. This makes the figure sit at a value that is more than third higher than the total net income. If Costco (NASDAQ:COST) succeeds in collecting more membership fees, it is expected to post impressive figures on the board.

The premarket trading on Wednesday saw shares increase to 1.3%, placing the share price at $144.52. The price had closed at $143.04 on Tuesday night, at a range of $109.50 to $143.49 on a 52-week range. By the end of Q4, prices have gone up by $18 per share. Thomson Reuters had estimated the price target at approx. $140.00, prior to the release of the results.

Costco (NASDAQ:COST) has made quite an entrance in to the fiscal 2015 and the figures quite evidently point to this fact. The company is expected to have a good year.