Investors Sell Costco (COST) Shares Amid Inline Q3 Earnings

Shares of Costco Wholesale Corporation (Nasdaq: COST) are slumping in early trade Wednesday following the company's in-line third-quarter results.

The company posted net sales of $20.19 billion, up 16% from the same quarter last year and slightly higher than the Street’s estimate of $20.07 billion. Combined with $435 million in membership fees, total revenue equaled $20.62 billion, up from $17.78 billion in total revenue a year ago. Membership fees increased $40 million year over year.

Net income came in at $324 million, or $0.73 per share, in the quarter, up from net income $306 million, or $0.68 per share, last year. COST said the quarter this year included a $49 million pre-tax LIFO charge, $0.07 per share.

Costco currently operates 581 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 32 in Mexico, 22 in the United Kingdom, seven in Korea, six in Taiwan, eight in Japan, and one in Australia.

Shares of Costco last traded at $79.38, down 2.4 percent from Tuesday's closing price.

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