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What: Shares of retailer PriceSmart
So what: Net sales increased 24% to $478.7 million and net income was $14.0 million, or $0.47 per share, down from $0.50 per share a year ago. Analysts had expected earnings of $0.58 per share on revenue of $472.5 million.
Now what: An earnings disappointment like this will quickly send shares to the doghouse, and that’s exactly where PriceSmart is today. The company pointed to a $0.04 per-share loss on currency translation as one of the reasons the company fell short of estimates. I’m encouraged by the growth rate, but with the stock trading at a 29 P/E, multiple earnings need to be climbing for this Fool to get excited about PriceSmart.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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