The 10-second takeaway
For the quarter ended Feb. 28 (Q2), PriceSmart met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Gross margins were steady, operating margins expanded, net margins expanded.
PriceSmart booked revenue of $607.4 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $612.4 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $549.8 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 $0.82. The five earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.82 for Q2 were 22% higher than the prior-year quarter's $0.67 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%, much about the same as the prior-year quarter. Operating margin was 6.0%, 50 basis points better than the prior-year quarter. Net margin was 4.1%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $580.3 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $2.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 498 members out of 516 rating the stock outperform, and 18 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give PriceSmart a green thumbs-up, and seven 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 $81.25.
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