Why PriceSmart Is Friday’s Big Earnings Loser
PriceSmart released mixed fiscal third-quarter financial results after the markets closed on Thursday.
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When PriceSmart Inc. (NASDAQ: PSMT) released its fiscal third-quarter financial results late on Thursday, the company said that it had $0.61 in earnings per share (EPS) and $782.2 million in revenue. Consensus estimates had called for $0.63 in EPS and $777.1 million in revenue. The same period of last year reportedly had EPS of $0.62 and $730.3 million in revenue.
During the latest quarter, net warehouse club sales increased 5.6% year over year to $750.5 million. Also, this came from 41 warehouse clubs in operation this quarter, up from 39 last year.
Separately, the company released its sales for the month of June just after the third quarter ended in May. In this time, net warehouse club sales increased 5.9% to $243.7 million, from $230.1 million in June a year earlier.
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For the 10 months ended June 30, 2018, net warehouse club sales increased 5.2% to $2,556.1 million, from $2,429.2 million for the 10 months ended June 30, 2017.
For the month of June, comparable warehouse sales increased only 0.6%. For the past 10 months, comparable warehouse sales increased 2.8%.
Shares of PriceSmart were last seen down about 10% at $83.80, with a consensus analyst price target of $95.00 and a 52-week trading range of $77.50 to $94.45.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
