Issaquah, WA, April 22--Costco Wholesale said it expects third quarter and full year earnings will be below Wall Street expectations, citing lower gross margins than expected due to gasoline sales. But the company increased its quarterly dividend 15 percent.
The company forecast third quarter earnings of $0.41 to $0.43 per a share, fourth-quarter earnings of $0.63 to $0.67 per a share, and 2005 earnings of $1.98 to $2.04 a share, excluding items.
Costco said analyst estimates for the third quarter and year were "at the high end of company expectations."
Analysts are looking for the company to earn $0.46 per share in the third quarter, $0.70 per share in the fourth quarter, and $2.10 a share in the year.
"Despite satisfactory sales and membership results, and reasonably good expense control, our gross margins were lower than planned, principally from gasoline sales," said Chief Financial Officer Richard Galanti in a statement.
