Barclays Maintains an 'Equalweight' on Costco Wholesale (COST); Review of 4Q11 Earnings

Barclays maintains an 'Equalweight' on Costco Wholesale (NASDAQ: COST) price target raised from $80 to $85.

Barclays analyst says, "Costco reported 4Q11 EPS of $1.08, $0.01 below our estimate of $1.09. Sales increased 16.9% to $27.6 B. Comps increased 12% in the quarter, including an 8% increase in average transaction and a 4% increase in frequency. Excluding the positive impact from gasoline and FX, comps would have been up 7%. September comps were also strong, increasing 12%, up 11% in the U.S. (+7% ex-gas) and up 14% internationally. Membership fee and other income increased 10.7% to $590 mm, benefiting from a 22% increase in executive member penetration, and continued solid renewal rates of 89% in the U.S. and Canada, and 87% worldwide."

"Given the expected benefit from the membership fee increases and incorporating $1.0 billion in annual repurchases going forward, we are increasing our FY12 EPS estimate to $3.95 from $3.80, and establishing our FY13 EPS estimate of $4.55."

For more ratings news on Costco Wholesale click here and for the rating history of Costco Wholesale click here.

Shares of Costco Wholesale closed at $80.25 yesterday.

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