Stock News in Focus: PriceSmart, Inc. (NASDAQ: PSMT)

PriceSmart, Inc. (NASDAQ: PSMT) changed 0.52% to recent value of $55.79. The stock transacted 88421 shares during most recent day however it has an average volume of 178.29K shares. It spotted trading -30.18% off 52-week high price. On the other end, the stock has been noted 35.58% away from the low price over the last 52-weeks.

PriceSmart, Inc. (PSMT) recently reported its results of operations for the third quarter of fiscal year 2020 which ended on May 31, 2020.

Third Quarter Financial Results

Total revenues for the third quarter of fiscal year 2020 increased 1.4% to $799.9M contrast to $788.6M in the third quarter of the previous year. For the third quarter of fiscal year 2020, net merchandise sales increased 1.8% to $768.4M from $755.0M in the third quarter of fiscal year 2019. Foreign currency exchange rate fluctuations influenced net merchandise sales negatively by $19.3M or 2.5% of net merchandise sales.

The Company had 45 clubs in operation as of May 31, 2020, contrast to 42 warehouse clubs in operation as of May 31, 2019.

For the thirteen-week period ended May 31, 2020, comparable net merchandise sales reduced 3.6% contrast to the same thirteen-week period a year ago. Foreign currency exchange rate fluctuations influenced comparable net merchandise sales negatively by $18.4M, or 2.5% of comparable net merchandise sales.

The Company recorded operating income for the third quarter of fiscal year 2020 of $24.0M, as contrast to operating income of $22.0M in the previous year. Net income attributable to PriceSmart was $12.7M, or $0.41 per diluted share, in the third quarter of fiscal year 2020. Net income in the third quarter of fiscal year 2019 was $14.1M, or $0.46 per diluted share.

The Company reports comparable net merchandise sales on a “same week” basis with 13 weeks in each quarter starting on a Monday and ending on a Sunday. The periods are established at the starting of the fiscal year to provide as close a match as possible to the calendar month and quarter that is used for financial reporting purposes. This approach equalizes the number of weekend days and weekdays in each period for improved sales comparison, as we experience higher merchandise club sales on the weekends. Each of the warehouse clubs used in the calculations was open for at least 13 ½ calendar months before its results for the current period were contrast with its results for the previous period.

The term “currency exchange rates” refers to the currency exchange rates we use to convert net merchandise and comparable net merchandise sales for all countries where the functional currency is not the U.S. dollar into U.S. dollars. The Company calculates the effect of changes in currency exchange rates as the difference between current period activities translated using the current period’s currency exchange rates, and the comparable previous year period’s currency exchange rates. The disclosure of the effects of currency exchange rate fluctuations on the Company’s results permits investors to understand better the Company’s underlying performance.

PSMT has a gross margin of 16.70% and an operating margin of 3.70% while its profit margin remained 2.40% for the last 12 months. Its earnings per share (EPS) expected to touch remained -15.60% for this year while earning per share for the next 5-years is expected to reach at 15.00%. According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.90% from the mean of 20 days, -3.22% from mean of 50 days SMA and performed -11.72% from mean of 200 days price. Company’s performance for the week was -4.57%, 10.54% for month and YTD performance remained -21.44%.

 

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