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Earnings Analysis: 
Costco Wholesale Profit 19.5% up, Plans $1 Billion Buyback
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:40 AM EDT October 06 2005



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Costco Wholesale Corp., retailer, reported a Q4 profit rise of 19.5% to73 cents a share on 10.3% revenue growth and announced its intentions to buy back another $1 billion in shares.

 
Costco Wholesale Corp., (COST: chart), said the quarter included 7 cents in tax benefits; apart from those benefits, its earnings of 67 cents topped analysts’ forecasts of 64 cents a share. Comparable sales increased 11% in September, with overall sales up 13% to $5.14 billion.

Marriott International Inc., (MAR: chart), lodging industry operator, reported 12% Q3 net income rise to 65 cents per share, beating the analyst estimate by a penny, and up from 56 cents per share in the year-ago period on revenue growth at the company's hotels, boosted by higher room rates. The latest quarter incorporated a charge of 5 cents per share for writing down the value of the company's investment in a Delta Air Lines leveraged aircraft lease. Excluding the charge, net income was 70 cents per share.

International Speedway Inc., (ISCA: chart), motorsports promoter, announced Q3 net profit dropped 46% to 69 cents a share despite 7.5% revenue growth. Its result in the same period last year was boosted by a 68 cents a share gain from the sale of North Carolina Speedway's assets, and the company stock beat the analysts’ forecasts of 65 cents a share.

RPM International, (RPM: chart), specialty paints manufacturer, announced that Q1 net income dropped to 40 cents a share, from 44 cents a share in the year-earlier period, missing the analysts’ forecasts of 48 cents a share. Without asbestos-related costs, net income in the current period was 47 cents a share. The company stated that its Q2 will be ""particularly challenging"" because of Hurricanes Rita and Katrina.

ATI Technologies, Inc., (ATYT: chart), graphics chipmaker, reported a Q4 loss of 41 cents a share on revenue decline from $60 million from the Q3 to $470 million, missing the analysts’ forecasts for a loss of 30 cents a share. Excluding one-time items, the company reported a loss of 12 cents a share.

Schnitzer Steel Industries, Inc., (SCHN: chart), recycler, posted Q4 net income of $1.11 per share, down from $1.22 per share in the same period last year on revenue decline. The company posted for the fiscal year ended August 31, 2005, record net income of $4.72 per share, up vs. $3.58 per share in the year-ago period on revenue of $853.1 million, up from $688.2 million for the 2004 fiscal year.
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