Costco First Quarter Earnings Only OK, Sales Up Slightly

Costco reported its first quarter earnings results in the wee hours this morning. Here’s the official report. And here’s the report from Reuters, with the main info that will give you a clue about how the stock will do:

Costco Wholesale Corp’s (COST.O: Quote, Profile, Research, Stock Buzz) quarterly profit rose slightly as strong results from its gasoline stations helped to offset weak consumer demand for all but the most essential household items.

Net income rose to $262.5 million, or 60 cents per share, for the fiscal first quarter ended November 23, from $262 million, or 59 cents per share, a year earlier.

Excluding a charge of 5 cents per share related to valuing life insurance contracts and an impairment of corporate investments, earnings per share were 65 cents, compared with analysts’ view of 62 cents, according to Reuters Estimates.

The results don’t seem horrible in this economy, but those “analysts” hate it when the earnings are less than their predictions, so you can expect the stock price to get hit today. It’s so stupid how that happens, but that’s the way it goes I guess.

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