The 10-second takeaway
For the quarter ended May 31 (Q3), PriceSmart met expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Margins dropped across the board.
PriceSmart tallied revenue of $506.8 million. The six analysts polled by S&P Capital IQ expected to see a top line of $508.4 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $429.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.52. The six earnings estimates compiled by S&P Capital IQ forecast $0.60 per share. GAAP EPS of $0.52 for Q3 were 3.7% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.9%, 10 basis points worse than the prior-year quarter. Operating margin was 5.0%, 10 basis points worse than the prior-year quarter. Net margin was 3.1%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $515.5 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $2.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 503 members out of 520 rating the stock outperform, and 17 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give PriceSmart a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PriceSmart is outperform, with an average price target of $74.75.
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