PriceSmart Packs A Punch: Q3 Earnings Soar Past Estimates with Solid Sales Growth

PriceSmart, Inc. PSMT shares are trading higher after the company reported third-quarter FY24 revenue growth of 12.1% Y/Y to $1.23 billion, beating the consensus of $1.21 billion.

Net merchandise sales grew 11.6% to $1.19 billion in the quarter, and on a constant currency basis, sales increased by 9.1% Y/Y.

Comparable net merchandise sales for the 50 warehouse clubs open for more than 13 ½ calendar months increased 7.8% for the 13 weeks ended June 2, 2024.

Operating income rose to $49.9 million from $43.1 million in the prior year quarter. Adjusted EBITDA stood at $71.0 million vs. $63.9 million in the same period last year.

Adjusted EPS of $1.08, exceeding the consensus of $1.01.

As of May-end, the company had 54 warehouse clubs in operation vs 51 the prior year. The company held cash and equivalents of $231 million.

Investors can gain exposure to the stock via Invesco S&P SmallCap Consumer Staples ETF PSCC.

PSMT Stock Prediction For 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Pricesmart’s revenue has grown at an average rate of 9.71% annually over the past 5 years. The average 1-year price target from analysts is $90.0, representing an expected 14.37% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Pricesmart have seen an annualized return of -3.19%, underperforming the S&P500 index by 11.91%. This compares to 6.17% growth in the overall Consumer Staples sector. Pricesmart has a beta of 1.04.

Price Action: PSMT shares are up 1.25% at $79.28 at the last check Thursday.