PriceSmart Whiffs on Earnings

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PriceSmart (NAS: PSMT) reported earnings on Jan. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), PriceSmart met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and earnings per share dropped.

Margins dropped across the board.

Revenue details
PriceSmart logged revenue of $468 million. The five analysts polled by S&P Capital IQ expected a top line of $468 million. Sales were 24% higher than the prior-year quarter's $386 million


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.47. The four earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS of $0.47 for Q1 were 6.1% lower than the prior-year quarter's $0.50 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.6%, 130 basis points worse than the prior-year quarter. Operating margin was 5.1%, 80 basis points worse than the prior-year quarter. Net margin was 2.9%, 100 basis points worse than the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $530 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $2.0 billion. The average EPS estimate is $2.57.

Investor Sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 338 members out of 348 rating the stock outperform, and 10 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give PriceSmart a green thumbs-up, and five 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 $74.25.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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