Costco Q1 Earnings Highlights: Shares Are Trading Higher After The Company Posted Upbeat Q1 Earnings

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Costco Wholesale Corporation (NASDAQ:COST) posted upbeat earnings for its first quarter and announced a special cash dividend of $15 per share on Thursday.

Costco said first-quarter net sales increased 6.1% year-over-year. The company reported quarterly revenue of $57.8 billion, which beat the consensus estimate of $57.72 billion. The retailer reported adjusted quarterly earnings of $3.48 per share, which beat analyst estimates of $3.42 per share.

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00:00 Costco's earnings Q1 adjusted $3.48 beats the $3.42 estimate Q1 net sales of 56.72 billion

00:10 total revenues of 57.8 billion beat the 57.72 billion estimate. Costco's wholesales

00:18 executive said that gross margins in the quarter were higher year over year by 43 basis points

00:24 at 11.04% that was said on the conference call. But of course, the big surprise came with the

00:31 special dividend of course, of $15. Well, that will definitely help out things.

00:38 Yeah, and I tweeted out that I thought any rally in Costco likely gets faded because we have this

00:44 whole leaders to laggers to leaders thing. But then they announced a $15 special dividend. I'm

00:49 like, well, I've changed things. Because it's like stocks usually don't sell off and they

00:55 announce a $15 special dividend. They usually go up 15 bucks. Yeah. So but what we saw was the

01:03 sell off. It actually surprised me very much. It got up. They ran it up the 15 bucks to 645. Then

01:08 they sold it off 40 or 25 points all the way down to 620. Then they bought it all the way back up.

01:15 So choppy, choppy session here. Wow, I don't even know what to say on Costco. I mean, the fade did

01:20 happen, but then they've just rebought it right back up. I'm surprised that fade happened though

01:25 with that $15 special dividend. That's what surprised me the most. Yeah, trade it. They've

01:30 tacked on 1410 right here. So pre market high, we're trading just off the highs of the pre market

01:37 session that comes in at 648.20. The street was selling into the report yesterday, kind of going

01:45 with the whole leader laggard thing. I don't know if they were getting short, but we'll see. See if

01:51 they continue to take off. I mean, you can look at it. It's at an all time high. It's breaking out.

01:56 They must be doing pretty darn good over there. They're giving a $15 special dividend.

02:02 What I would encourage investors to do is maybe go... Was it Home Depot that did that a while ago,

02:08 Dennis? There's been a few. I don't remember who. And Nev making a point in the chat,

02:14 it's deducted from the stock price. Absolutely. When it goes X dividend, the stock price goes

02:18 that down. But this is how stupid this market always is. I've always said, really, when you

02:22 declare a dividend, they're just taking it from you. So I mean, your stock's going to go down 15

02:26 points on the day it goes X dividend. So why jack it up? But that's what they do. They jack it up

02:30 to take it back away. So I mean, it's still coming from your cash, which you already had.

02:35 But investors do that, especially in bull market. Stock $10 special dividend. I've traded it for

02:42 years. They've usually go up seven, eight bucks at least. Maybe not the whole thing,

02:46 but they go up a lot of it.

Costco Q1 Earnings Highlights: Shares Are Trading Higher After The Company Posted Upbeat Q1 Earnings

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