Pricesmart: Here’s What Investors Need to Know Before Earnings

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Pricesmart (NASDAQ:PSMT) will report earnings after markets close on Wednesday, July 10th. PriceSmart, Inc. owns and manages international merchandising businesses. The Company licenses and owns membership stores using the trade name PriceSmart and PriceCostco. PriceSmart’s international market consists of Latin America and Asia. The Company also operates domestic merchandising programs, including its Auto Referral Program and its Travel Program.

Here is your Cheat Sheet to Pricesmart Earnings:

Earnings Expectations: Analysts expect earnings of $0.64 per share on revenues of $568.33 million. Currently, the company’s P/E ratio stands at 34.65.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.68 to a profit $0.66. For the current year, the average estimate is a profit of $2.78, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Pricesmart has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,120 1,252 1,396 1,714 2,051
Diluted EPS ($) 1.30 1.45 1.68 2.07 2.24

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012 Feb. 28, 2013
Revenue ($) in millions 506.77 515.45 535.29 607.41
Diluted EPS ($) 0.52 0.58 0.66 0.82

Past Performance:
Pricesmart has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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