Costco Wholesale (COST): Patience Brings Rewards - UBS
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields fall on U.S. jobs data, euro flat before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
UBS analyst, Michael Lasser, reiterated his Buy rating on Costco Wholesale (NASDAQ: COST) after the company reported earnings. The quarter was largely in-line with expectations, which should be met with relief as the market feared there would be downside. A lower than expected tax rate contributed ~$0.05 to the 4Q EPS but most of the key measures were as anticipated.
MFI of $832 mm met the consensus forecast. The underlying metrics remained healthy & consistent as the company saw a 7% overall increase in members, driven by an 87.6% renewal rate worldwide. Online sales growth remained solid at 12% even as it decelerated slightly on a tougher compare.
The company provided indications its reported comps should accelerate in the coming periods as deflation in categories like proteins fades & the loss of tobacco sales become less of a factor.
No change to the price target of $180.
Shares of Costco Wholesale closed at $147.49 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sonoco (SON) Affirms FY16 Outlook; Guides FY17 EPS Below Views
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Earnings
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!