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PriceSmart (PSMT) Q4 Earnings & Revenues Rise (Revised)

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PriceSmart, Inc. (PSMT - Free Report) delivered fourth-quarter fiscal 2019 results, wherein the top and bottom lines increased year over year. Moreover, comparable net merchandise sales (comps) increased despite foreign currency headwinds.

The company reported quarterly earnings of 67 cents a share, up 8.1% from unadjusted figure of 62 cents in the year-ago period.


The prior-year quarterly figure includes the adverse impact of 15 cents a share pertaining to the results of operations and costs associated with the acquisition of Aeropost. It also excluded the favorable impact of 6 cents a share related to U.S. tax reform. Considering these, the prior-year adjusted figure would have been 71 cents a share, as we had originally determined

PriceSmart, Inc. Price, Consensus and EPS Surprise

 

Total revenues grew 3% to $801.3 million from $777.9 million in the prior-year quarter. Net merchandise sales rose 3.7% to $768.9 million, including adverse currency impacts of about 2.7%. While export sales declined 42.3% to $7.7 million, membership income increased 4.2% to $13.4 million. Other revenues and income came in at $11.3 million compared with $10.3 million in the year-ago quarter.

Comparable net merchandise sales for the 41 warehouse clubs increased 1.5%. The metric was adversely impacted by currency rate fluctuations to the tune of $19.9 million or 2.7%.

Warehouse club and other operations expenses came in at $79.7 million, up 8% from the year-ago quarter.

General and administrative expenses decreased 2.8% to roughly $24.6 million. Pre-opening expenses came in at $967,000, up from $50,000 in the year-ago quarter.

Other Financial Aspects

PriceSmart, which operates 43 warehouse clubs, ended the quarter with cash and cash equivalents of $102.7 million and long-term debt (including current portion) of $89.6 million. The company’s shareholders’ equity was $797.4 million, excluding non-controlling interests.

Notably, shares of this operator of membership warehouse clubs have increased approximately 18% in the past three months against the industry’s growth of 11.4%.

3 Key Picks

Burlington Stores, Inc (BURL - Free Report) currently has a long-term earnings growth rate of 15.9% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General Corporation (DG - Free Report) , a Zacks Rank #2 (Buy) stock, has a long-term earnings growth rate of 9.6%.
 
Costco Wholesale Corporation (COST - Free Report) presently has a long-term earnings growth rate of 8.5% and a Zacks Rank #2.

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(We are reissuing this article to correct a mistake. The original article, issued on October 30, 2019, should no longer be relied upon.)

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