Costco Shares Fall on Outlook

Costco Wholesale Corp., the largest U.S. warehouse club retailer, said it would miss analysts’ estimates for the third straight quarter, hurt by lower gasoline profit. The company’s shares fell $3.85, or 8.8%, to $40.17, their biggest drop in 21 months.

The retailer forecast as much as 43 cents a share in fiscal third-quarter profit and as much as $2.04 for the year. Issaquah, Wash.-based Costco was expected to earn 46 cents a share in the quarter that ends May 8 and $2.10 for the year, the average estimates of analysts polled by Thomson First Call.