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Founded in 1994 and headquartered in San Diego, CA, PriceSmart (PSMT - Free Report) is the largest operator of membership warehouse clubs in Central America and the Caribbean. It has recently entered the South American region with clubs in Colombia.
The company operates 40 warehouse clubs in 12 countries and one U.S. territory.
Disappointing Quarterly Results
The company reported quarterly earnings of 61 cents a share, missing the Zacks Consensus Estimate of 69 cents. Cost of goods sold and SG&A expenses went up during the quarter.
This was the fourth miss for the company in the trailing five quarters. Total revenues were however up 7.1% and ahead of estimates.
Shares plunged almost 8% in the after-market trading. Also, the company reported soft comparable warehouse sales performance for the month of June, further worrying investors about its outlook.
Estimates Slashed
Analysts have slashed their estimates significantly after poor results. Zacks Consensus Estimates for the current and next year are down to $3.01 per share and $3.20 per share respectively, down from $3.20 and $3.67, before the results.
The Bottom Line
Shares of this warehouse operator are down more than 10% this year but the outlook remains cloudy with consecutive misses and soft comps. The industry rank is in the bottom 20% and increases the likelihood of continued underpeformance.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Bear of the Day: PriceSmart (PSMT)
Founded in 1994 and headquartered in San Diego, CA, PriceSmart (PSMT - Free Report) is the largest operator of membership warehouse clubs in Central America and the Caribbean. It has recently entered the South American region with clubs in Colombia.
The company operates 40 warehouse clubs in 12 countries and one U.S. territory.
Disappointing Quarterly Results
The company reported quarterly earnings of 61 cents a share, missing the Zacks Consensus Estimate of 69 cents. Cost of goods sold and SG&A expenses went up during the quarter.
This was the fourth miss for the company in the trailing five quarters. Total revenues were however up 7.1% and ahead of estimates.
Shares plunged almost 8% in the after-market trading. Also, the company reported soft comparable warehouse sales performance for the month of June, further worrying investors about its outlook.
Estimates Slashed
Analysts have slashed their estimates significantly after poor results. Zacks Consensus Estimates for the current and next year are down to $3.01 per share and $3.20 per share respectively, down from $3.20 and $3.67, before the results.
The Bottom Line
Shares of this warehouse operator are down more than 10% this year but the outlook remains cloudy with consecutive misses and soft comps. The industry rank is in the bottom 20% and increases the likelihood of continued underpeformance.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>