PriceSmart Misses Where It Counts
PriceSmart (NAS: PSMT) reported earnings on April 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q2), PriceSmart beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Margins dropped across the board.
PriceSmart reported revenue of $549.8 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $532.8 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $447.7 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 $0.67. The five earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS of $0.67 for Q2 were 12% higher than the prior-year quarter's $0.60 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 15.5%, 30 basis points worse than the prior-year quarter. Operating margin was 5.5%, 50 basis points worse than the prior-year quarter. Net margin was 3.7%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $511.2 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $2.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 456 members out of 473 rating the stock outperform, and 18 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give PriceSmart a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PriceSmart is buy, with an average price target of $70.75.
If you're interested in retailers like PriceSmart as investments, you should check out the retail concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add PriceSmart to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of PriceSmart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.