Categories Earnings, Other Industries

What to expect from PriceSmart Q3 2019 earnings?

PriceSmart Inc. (NASDAQ: PSMT) is scheduled to report its earnings results for the third quarter of 2019 on Wednesday after the market closes. The membership-style shopping warehouse club operator’s results will be hurt by income tax provision as well as costs from omnichannel capabilities expansion.

The results are expected to be impacted by the continuation of foreign currency devaluation as well as some of the geopolitical and economic impacts arising from trade uncertainty. The company expects the new format concept, which incorporates omnichannel and an e-commerce platform, to open up additional real estate and growth opportunities in the future.

The company is beginning to achieve sales from e-commerce but at a small level at this time. PriceSmart continues to increase options for last mile delivery. PriceSmart is expected to see positive comps within its food and fresh categories as well as from soda and beverages, pet supply, seafood, and meats.

What to expect from PriceSmart Q3 2019 earnings
Photo Courtesy: PriceSmart / Facebook post

Analysts expect the company’s earnings to plunge by 24.60% to $0.46 per share while revenue will rise by 1.20% to $791.38 million for the third quarter. In comparison, during the previous year quarter, the company posted a profit of $0.61 per share on revenue of $782.2 million. The company has missed analysts’ expectations thrice in the past four quarters.

For the second quarter, PriceSmart reported a 68% jump in earnings helped by lower income taxes provision. The results were negatively impacted by costs related to investments to expand its omnichannel capabilities as well as operating results of its marketplace and casillero business. Revenue rose 2% year-over-year. Comparable net merchandise sales declined by 0.9%.

Shares of PriceSmart opened higher on Monday and is trading in the green territory on the Nasdaq. The stock has fallen over 34% in the past year and over 10% in the past three months.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top