Earnings Preview: PriceSmart, Inc

| About: PriceSmart, Inc. (PSMT)

Company Profile

PriceSmart, Inc. owns and operates membership shopping warehouse clubs in the United States, Latin America, and the Caribbean.

PriceSmart, Inc (PSMT) is scheduled to report its third quarter earnings results on July 09, 2012, after market close.

Technical Overview

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PriceSmart has a market cap of $2.02 billion and it is currently trading around $66.95 with a 52 week range of $51.37 to $84.32. The stock has fallen 3.79% year to date. The following table provides the key financial ratios for PriceSmart:

Key Ratio Value
Current Ratio 1.37
PEG 1.82
P/E 31.88
Forward P/E 23.41
Profit Margin 3.31%
Return On Assets (ROA) 9.63%
Return On Equity (ROE) 16.96%
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Recent News

  • On June 7, 2012, PriceSmart announced that for the month of May 2012, net sales increased 16.1% to $163.4 million from $140.7 million in May a year earlier.
  • On May 7, 2012, PriceSmart announced that for the month of April 2012 net sales increased 12.3% to $159.1 million from $141.7 million in April a year earlier.
  • On April 6, 2012, PriceSmart announced that for the month of March 2012, net warehouse club sales increased 23.9% to $172.4 million, from $139.2 million in March a year earlier.

Here's a list of recent changes to analyst ratings:

  • On June 21, 2012, Roth Capital initiated coverage on PriceSmart with a NEUTRAL rating and set the price target as $71.00.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $510.68 million when compared to $431.15 million for the same quarter last year. Earnings per share for the third quarter are expected to be 60 cents a share, up from 55 cents a share in the year-ago period.

The average price target from analyst for PriceSmart is $81.25 with average rating is OVERWEIGHT.

Out of the last 4 quarters, PriceSmart has met or exceeded the EPS estimates only once. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for PriceSmart:

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Competition

Wal-Mart Stores Inc (WMT), Costco Wholesale Corporation (COST), Target Corp (TGT), and Family Dollar Stores Inc (FDO) are considered as major competitors for PriceSmart and the table below provides the key metrics for these companies:

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Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in PSMT over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.