Costco Wholesale Corp. reported a rise in its 12-week net income, which rose 9.1 per cent or $516 million, and sales figures, which rose 1 per cent to $25.5 billion while comparable sales rose 6 per cent.
All estimates have been adjusted for negative impacts from gasoline price deflation and foreign exchange rates.
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The Washington-based company also reported that its net income for the 36-week period received positive impact from a $57-million tax benefit from a second-quarter special cash dividend. But the income was negatively impacted by a $14-million tax charge in the same second quarter. The company did not specify details of the ongoing income tax matter.
John Heinbockel, managing director for Guggenheim Securities, states in his report that what was made this year owing to gas profits will be given back next year.
Experts at Guggenheim Securities, New York, say that analyst earnings expectations for the wholesale company appear overly optimistic when normalization of gas margins over the next few quarters is taken into consideration.