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Shares of PriceSmart, Inc. (PSMT - Free Report) increased more than 5% after the close of the trading session on Jul 9, following its third-quarter fiscal 2020 results, wherein the top line grew year over year while the bottom line declined. Notably, the company reported quarterly earnings of 41 cents a share as compared to 46 cents a share in the year-ago quarter.
Total revenues grew 1.4% to $799.9 million from $788.6 million reported in the prior-year quarter. Net merchandise sales rose 1.8% to $768.4 million, including adverse currency impacts of about 2.5%. Export sales inched up 0.5% to $8.3 million, with membership income improving 3% to $13.5 million. Meanwhile, other revenues and income fell 19.9% to $9.7 million in the quarter under review.
Comparable net merchandise sales for the 46 warehouse clubs declined 3.6%. The metric was adversely impacted by currency rate fluctuations to the tune of $18.4 million or 2.5%.
Warehouse club and other operations expenses came in at $78.4 million, up 0.3% from the year-ago quarter. General and administrative expenses dropped 0.5% to roughly $24.4 million. Pre-opening expenses came in at $257,000, significantly down from $1,647,000 in the year-ago quarter.
PriceSmart, Inc. Price, Consensus and EPS Surprise
PriceSmart, which operates 46 warehouse clubs, ended the quarter with cash and cash equivalents of $261.8 million and long-term debt (including current portion) of $117 million. The company’s shareholders’ equity was $818.7 million, excluding non-controlling interests.
Further, the company deferred capital expenditures and discretionary expenses in the wake of the COVID-19 outbreak.
Business Developments
With consumers shifting to the online mode because of rising fears concerning this ongoing crisis, management launched the Click & Go program, which provides curbside pick-up and contactless delivery facilities. Post the launch, it witnessed positive customer feedback for the same. Encouragingly, it is working toward expediting the rollout of this facility across all stores. Apart from this, it is now offering online payment options, online visibility of inventory along with online signup and renewal of memberships.
Moving on, the company restarted various projects and launched its 46th Club in Liberia, Costa Rica, toward the start of the reported quarter. Further, it intends to open the 47th club in Bogota, Colombia, in the second quarter of fiscal 2021.
Price Performance
Notably, shares of this operator of membership warehouse clubs have lost 7.1% in the past three months against the industry’s growth of 6.9%.
Dollar General Corp. (DG - Free Report) has a long-term earnings growth rate of 12.3% and a Zacks Rank #1.
Hibbett Sports (HIBB - Free Report) has an expected long-term earnings growth rate of 7.7%. Also, the company has a Zacks Rank #2 (Buy).
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
PriceSmart's (PSMT) Q3 Earnings Decline Y/Y, Revenues Rise
Shares of PriceSmart, Inc. (PSMT - Free Report) increased more than 5% after the close of the trading session on Jul 9, following its third-quarter fiscal 2020 results, wherein the top line grew year over year while the bottom line declined. Notably, the company reported quarterly earnings of 41 cents a share as compared to 46 cents a share in the year-ago quarter.
Total revenues grew 1.4% to $799.9 million from $788.6 million reported in the prior-year quarter. Net merchandise sales rose 1.8% to $768.4 million, including adverse currency impacts of about 2.5%. Export sales inched up 0.5% to $8.3 million, with membership income improving 3% to $13.5 million. Meanwhile, other revenues and income fell 19.9% to $9.7 million in the quarter under review.
Comparable net merchandise sales for the 46 warehouse clubs declined 3.6%. The metric was adversely impacted by currency rate fluctuations to the tune of $18.4 million or 2.5%.
Warehouse club and other operations expenses came in at $78.4 million, up 0.3% from the year-ago quarter. General and administrative expenses dropped 0.5% to roughly $24.4 million. Pre-opening expenses came in at $257,000, significantly down from $1,647,000 in the year-ago quarter.
PriceSmart, Inc. Price, Consensus and EPS Surprise
PriceSmart, Inc. price-consensus-eps-surprise-chart | PriceSmart, Inc. Quote
Other Financial Aspects
PriceSmart, which operates 46 warehouse clubs, ended the quarter with cash and cash equivalents of $261.8 million and long-term debt (including current portion) of $117 million. The company’s shareholders’ equity was $818.7 million, excluding non-controlling interests.
Further, the company deferred capital expenditures and discretionary expenses in the wake of the COVID-19 outbreak.
Business Developments
With consumers shifting to the online mode because of rising fears concerning this ongoing crisis, management launched the Click & Go program, which provides curbside pick-up and contactless delivery facilities. Post the launch, it witnessed positive customer feedback for the same. Encouragingly, it is working toward expediting the rollout of this facility across all stores. Apart from this, it is now offering online payment options, online visibility of inventory along with online signup and renewal of memberships.
Moving on, the company restarted various projects and launched its 46th Club in Liberia, Costa Rica, toward the start of the reported quarter. Further, it intends to open the 47th club in Bogota, Colombia, in the second quarter of fiscal 2021.
Price Performance
Notably, shares of this operator of membership warehouse clubs have lost 7.1% in the past three months against the industry’s growth of 6.9%.
Key Picks
Big Lots (BIG - Free Report) has a long-term earnings growth rate of 7.1% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General Corp. (DG - Free Report) has a long-term earnings growth rate of 12.3% and a Zacks Rank #1.
Hibbett Sports (HIBB - Free Report) has an expected long-term earnings growth rate of 7.7%. Also, the company has a Zacks Rank #2 (Buy).
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>