Shares of Costco Wholesale (NASDAQ:COST) were rising today after the warehouse retailer turned in a strong second-quarter earnings report with better-than-expected profits. As a result, the stock was up 5.4% as of 10:56 a.m. EST.
So whatCostco continued to demonstrate why it's a best-in-class retailer, posting comparable-store sales growth of 6.7%, excluding fuel, and 7.2% in the U.S. E-commerce sales, a key focus for the company these days, were up 25.5%, and overall revenue increased 7.3% to $35.4 billion, though that was slightly below analyst expectations at $35.67 billion.
Image source: Costco.
Gross margin climbed from 11% to 11.3%, leading to operating income jumping 18.4% to $1.2 billion. That drove earnings per share up from $1.59 to $2.01, which easily beat estimates at $1.69.
Costco announced a wage increase earlier in the week, lifting starting hourly wages from a range of $14 to $14.50 to a range of $15 to $15.50 in the U.S. and Canada; wages for supervisors also went up. On the earnings call, CFO Richard Galanti noted a broader online selection of products including new iMacs and MacBooks, and well as expansions in supply and processing plants for meat and chicken, and a new bakery in Canada.
Now whatCostco does not provide quarterly guidance, but the company updated its adjusted comps figures for the first four weeks of the third quarter, saying they were up 4.6% overall and 5.7% in the U.S. It said February growth was hurt by bad weather in North America and a shift earlier in the Lunar New Year. E-commerce sales increased 21.6% in that period.
While that may indicate slower growth in the third quarter, Costco continues to successfully adapt to the changing retail environment by embracing e-commerce, and is adding new stores, with three expected in the current quarter. Given the strong profit growth, it's not surprising to see the stock climbing today.
Roper Technologies, Inc. designs and develops software, and engineered products and solutions. It operates in four segments: RF Technology; Medical & Scientific Imaging; Industrial Technology; and Energy Systems & Controls. The company offers radio frequency identification (RFID) communication technology and software solutions, including application management software, software-as-a-service applications, card systems/integrated security solutions, toll and traffic systems, RFID card readers, and metering and remote monitoring products. It also offers diagnostic and laboratory software solutions; patient positioning devices and related software, 3-D measurement technology, and diagnostic and therapeutic disposable products; non-invasive instruments and video laryngoscopes; and a cloud-based financial analytics and performance software platform, as well as electron filters, charged couple devices, and complementary metal oxide semiconductor cameras, detectors, and related software. In addition, the company offers water meter and automatic meter reading products and systems, fluid handling pumps, materials analysis equipment and consumables, flow measurement and metering equipment, industrial valves and controls, and industrial leak testing products. Further, it provides control systems, fluid properties testing equipment, valves, vibration sensors and controls, and non-destructive inspection and measurement products and solutions. Additionally, the company provides enterprise software and information solutions for government contractors, professional services firms, and other project-based businesses. It serves healthcare, food, energy, water, education, and construction industries, as well as law and professional services firms in the United States and internationally. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was founded in 1981 and is based in Sarasota, Florida.
ClearSign Combustion Corporation designs and develops technologies to enhance emission and operational performance, energy efficiency, and overall cost-effectiveness of combustion systems in the United States. Its Duplex, Duplex Plug & Play, and Electrodynamic Combustion Control platform technologies enhance the performance of combustion systems in a range of markets, including energy, commercial/industrial boiler, chemical, petrochemical, and power industries. ClearSign Combustion Corporation was founded in 2008 and is headquartered in Seattle, Washington.
Shares of Ionis Pharmaceuticals Inc (NASDAQ:IONS) reached a new 52-week high on Tuesday . The stock traded as high as $72.41 and last traded at $72.37, with a volume of 551342 shares traded. The stock had previously closed at $70.49.
