What Investors Should Know About Costco's Earnings

Updated

In the video below, Fool analysts Blake Bos and Isaac Pino discuss their takeaways from a recent earnings conference call from retail superstore operator Costco Wholesale (NAS: COST) .

Costco reported a great bottom line: a 20% year-over-year increase in earnings per share. It also showed a 7% increase in same-store sales, well better than its competitors.

It is planning for 30 new stores for 2013, a 5% overall increase. It also plans for 25% store growth in Asia, and it's not yet even entered China, Bos says.


Costco is known as a very customer-friendly store, Pino says. It's also been very shareholder friendly. The company has issued a one-time $3 billion special dividend and plans about $500 million in share buybacks in the coming year, Bos says. That's good news for investors, since the buybacks will happen at a time when Costco stock is not cheap.

That investor friendliness has helped Costco shareholders wallop the market. The stock has returned 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that, we've compiled a premium research report with in-depth analysis on whether Costco is a buy right now and why. Simply click here now to gain instant access to this valuable investor's resource.

The article What Investors Should Know About Costco's Earnings originally appeared on Fool.com.

Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of Costco Wholesale. Motley Fool newsletter services recommend Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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