We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PriceSmart (PSMT) Q2 Earnings Surpass Estimates, Stock Down
Read MoreHide Full Article
PriceSmart, Inc. (PSMT - Free Report) delivered second-quarter fiscal 2019 results, wherein both top and bottom lines came ahead of the Zacks Consensus Estimate, with the latter marking its third consecutive beat. However, comparable net merchandise sales (comps) declined due to foreign currency headwinds. Also, the bottom line fell slightly from the year-ago period.
We note that PriceSmart’s shares lost 1.3% during yesterday’s after-market trading session. Moreover, this Zacks Rank #5 (Strong Sell) stock has plunged 21.1% in the past six months against the industry’s growth of 8.5%.
Q2 in Detail
The company’s adjusted earnings came in at 88 cents a share, which outpaced the Zacks Consensus Estimate of 56 cents. However, the bottom line slipped 1.1% from the adjusted earnings of 89 cents in the year-ago period. Including one-time items, earnings for the reported quarter were 79 cents, up 68.1% year over year.
PriceSmart, Inc. Price, Consensus and EPS Surprise
Total revenues grew 1.8% to $854.4 million from $839.6 million in the prior-year quarter. Further, the top line surpassed the Zacks Consensus Estimate of $853 million.
Net merchandise sales rose 0.5% year over year to $820.3 million, including adverse currency impacts of about 3.6%. Meanwhile, export sales plunged 25.1% to $6.8 million, whereas membership income climbed 1.1% to $12.8 million. Other revenues and income came in at $14.5 million compared with $1.1 million in the year-ago quarter.
Comps dipped 0.9%, with currency fluctuations having a negative impact of 3.7%.
Operating income declined 2.1% to $36.5 million, while operating margin contracted marginally by 10 basis points to 4.3%. Operating margins were hurt by higher expenses. Warehouse club and other operations expenses came in at $75.7 million, up 5.2% from the year-ago quarter. General and administrative expenses increased 23.3% to roughly $25 million.
As of Feb 28, 2019, the company had 41 warehouse clubs in operation compared with 40 clubs in February 2018.
Other Financial Aspects
PriceSmart ended the quarter with cash and cash equivalents of $90.3 million and long-term debt (including current portion) of $26.2 million. The company’s shareholders’ equity was $773.2 million, excluding non-controlling interests.
Costco (COST - Free Report) , with long-term EPS growth rate of 8.9%, carries a Zacks Rank #2 (Buy).
Target (TGT - Free Report) , with a Zacks Rank #2, has long-term earnings per share growth rate of 6.3%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
PriceSmart (PSMT) Q2 Earnings Surpass Estimates, Stock Down
PriceSmart, Inc. (PSMT - Free Report) delivered second-quarter fiscal 2019 results, wherein both top and bottom lines came ahead of the Zacks Consensus Estimate, with the latter marking its third consecutive beat. However, comparable net merchandise sales (comps) declined due to foreign currency headwinds. Also, the bottom line fell slightly from the year-ago period.
We note that PriceSmart’s shares lost 1.3% during yesterday’s after-market trading session. Moreover, this Zacks Rank #5 (Strong Sell) stock has plunged 21.1% in the past six months against the industry’s growth of 8.5%.
Q2 in Detail
The company’s adjusted earnings came in at 88 cents a share, which outpaced the Zacks Consensus Estimate of 56 cents. However, the bottom line slipped 1.1% from the adjusted earnings of 89 cents in the year-ago period. Including one-time items, earnings for the reported quarter were 79 cents, up 68.1% year over year.
PriceSmart, Inc. Price, Consensus and EPS Surprise
PriceSmart, Inc. Price, Consensus and EPS Surprise | PriceSmart, Inc. Quote
Total revenues grew 1.8% to $854.4 million from $839.6 million in the prior-year quarter. Further, the top line surpassed the Zacks Consensus Estimate of $853 million.
Net merchandise sales rose 0.5% year over year to $820.3 million, including adverse currency impacts of about 3.6%. Meanwhile, export sales plunged 25.1% to $6.8 million, whereas membership income climbed 1.1% to $12.8 million. Other revenues and income came in at $14.5 million compared with $1.1 million in the year-ago quarter.
Comps dipped 0.9%, with currency fluctuations having a negative impact of 3.7%.
Operating income declined 2.1% to $36.5 million, while operating margin contracted marginally by 10 basis points to 4.3%. Operating margins were hurt by higher expenses. Warehouse club and other operations expenses came in at $75.7 million, up 5.2% from the year-ago quarter. General and administrative expenses increased 23.3% to roughly $25 million.
As of Feb 28, 2019, the company had 41 warehouse clubs in operation compared with 40 clubs in February 2018.
Other Financial Aspects
PriceSmart ended the quarter with cash and cash equivalents of $90.3 million and long-term debt (including current portion) of $26.2 million. The company’s shareholders’ equity was $773.2 million, excluding non-controlling interests.
3 Stocks You Can’t Miss
Kohl’s (KSS - Free Report) , with long-term earnings per share growth rate of 7.2%, sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco (COST - Free Report) , with long-term EPS growth rate of 8.9%, carries a Zacks Rank #2 (Buy).
Target (TGT - Free Report) , with a Zacks Rank #2, has long-term earnings per share growth rate of 6.3%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>