For Immediate Release
Chicago, IL – March 4, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Costco Wholesale Corporation (COST), BJ’s Wholesale Club Inc. (BJ), Wal-Mart Stores Inc. (WMT) and Big Lots (BIG).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Costco Earnings Rise
Costco Wholesale Corporation (COST), one of the leading U.S. warehouse club operators, recently posted second-quarter 2010 results. The quarterly earnings of 70 cents a share missed the Zacks Consensus Estimate by a penny but rose 27.3% from 55 cents delivered in the prior-year quarter.
On a reported basis, including a charge of 3 cents a share, quarterly earnings came in at 67 cents, up 21.8% year-over-year.
Costco’s quarterly earnings underperformed the Zacks Consensus Estimate by 1.4%. In the first quarter 2010 and fourth quarter 2009, earnings had topped the Zacks Consensus Estimate by 1.7% and 7.8%, respectively.
The double-digit increase in the bottom-line was buoyed by a double-digit rise in top-line due to improved sales of discretionary items, as consumers started flocking to warehouse clubs. The company’s international operations have been the major driver.
Total revenue, which includes net sales and membership fee, climbed 11.3% year-over-year to $18,742 million. Net sales jumped 11.3% to $18,356 million, whereas membership fee rose 8.7% to $386 million.
Costco’s comparable-store sales for the quarter rose 9%, reflecting a comparable sales growth of 5% at its U.S. locations and 26% at its international divisions. The results were favorably impacted by rising gasoline prices and a weaker U.S. dollar.
Excluding the effects of gasoline prices and a softer dollar, Costco’s comparable-store sales rose 3% with U.S. comparable sales up 2%, while international comparable sales were up 10%.
The warehouse retailer, which faces stiff competition from BJ’s Wholesale Club Inc. (BJ) and Sam’s Club, a division of Wal-Mart Stores Inc. (WMT) also said that comparable-store sales for February rose 9%, reflecting a comparable sales growth of 5% at its U.S. locations and 26% at its international divisions.
ADP Sees 20,000 Jobs Lost
While the report was exactly in line with expectations, and has been showing improvement consistently over the last year, at least in terms of few job losses, it is still reporting people on-balance losing their jobs. Production lost because people are out of work is lost forever, and the economy is operating far below its potential, by as much as $1 trillion a year right now.
While unemployment benefits were finally extended last night, the extension in the emergency benefits only lasts another month. So a month from now, look for Senator Jim Bunning to throw another bean-ball at the heads of the unfortunate six-plus million people who have been out of work now for more than six months.
While extended unemployment benefits do help people and also help low-end retailers like Wal-Mart and Big Lots (BIG), since without the benefits those people would have no income at all, they are not a great long-term solution. There is work to be done in the country, and people available to do the work — we need to find a way to put the two together. If that means for the short term we run a bigger budget deficit, so be it.
If the nation is running that far below potential then it is not generating the income that then becomes tax revenues. The bulk of the increase in the deficit over the last two years has come because tax revenues have plunged, not because of a huge income in spending — other than the sort of automatic stabilizers, such as unemployment benefits, that rise during economic downturns.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
