The 10-second takeaway
For the quarter ended Aug. 31 (Q4), PriceSmart met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
PriceSmart logged revenue of $515.5 million. The five analysts polled by S&P Capital IQ hoped for sales of $511.0 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $445.7 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 $0.58. The six earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.58 for Q4 were 38% higher than the prior-year quarter's $0.42 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 16.7%, 80 basis points better than the prior-year quarter. Operating margin was 5.4%, 120 basis points better than the prior-year quarter. Net margin was 3.4%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $540.3 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $2.36 billion. The average EPS estimate is $2.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 493 members out of 511 rating the stock outperform, and 18 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give PriceSmart a green thumbs-up, and nine 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 $79.75.
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