The 10-second takeaway
For the quarter ended Nov. 30 (Q1), PriceSmart missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins increased across the board.
PriceSmart chalked up revenue of $523.6 million. The six analysts polled by S&P Capital IQ predicted sales of $539.1 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $477.5 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 $0.66. The six earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.66 for Q1 were 40% higher than the prior-year quarter's $0.47 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 16.3%, 50 basis points better than the prior-year quarter. Operating margin was 5.6%, 50 basis points better than the prior-year quarter. Net margin was 3.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $621.4 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $2.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 497 members out of 514 rating the stock outperform, and 17 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 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 hold, with an average price target of $84.00.
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