NASDAQ$PSMT

Pricesmart Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Pricesmart's Q2 2020 earnings increased due to revenue growth.

PriceSmart reported a 6.1% increase in total revenues, reaching $906.7 million, and net income attributable to PriceSmart was $25.6 million, or $0.85 per diluted share.

  • Total revenues increased by 6.1% to $906.7 million.
  • Net merchandise sales increased by 6.3% to $871.7 million.
  • Operating income increased to $38.8 million, compared to $36.5 million in the prior year.
  • Net income attributable to PriceSmart was $25.6 million, or $0.85 per diluted share.

Headline financials

Total Revenue

$907M

Previous: $854M+6.1%
EPS (adj)

$0.85

Previous: $0.88-3.4%
Capital Expenditures

-$70.8M

Previous: -$62.7M-13.0%
Free Cash Flow

-$45.2M

Previous: -$38.8M-16.4%
Net Income

$25.6M

Previous: $23.8M+7.5%
Operating Income

$38.8M

Previous: $36.5M+6.2%
Gross Profit

$907M

Previous: $854M+6.1%
Cash & Equivalents

$133M

Previous: $90.3M+47.2%
Total Assets

$1.5B

Previous: $1.26B+19.1%
Stock-Based Comp

$2.86M

Previous: $3.35M-14.4%

Revenue & EPS history

Pricesmart · Revenue · Quarterly

$907M

Q2 2020+6.1%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Pricesmart · $1.12B total across 4 segments · Q4 2023

  • Net Merch. Sales
    $1.09B+10.0%
  • Membership Income
    $17.2M+10.6%
  • Export Sales
    $8.05M-36.1%
  • Other Revenue
    $3.92M

Forward guidance

The company expects the impact of the pandemic and the related varied restrictions on operations to adversely affect traffic and sales over the next few months. They are proactively taking steps to access and preserve cash available on-hand, including drawing funds on short-term facilities and delaying strategic capital expenditures.

Tailwinds

  • Introducing an online catalog that enables members to see, almost real-time, the availability of products for all clubs.
  • Launched curbside pickup and home delivery in coordination with third-party delivery services for certain warehouse clubs.
  • Launching online ordering and pick-up at club, referred to as “Click and Go.”
  • Offering a “drive-through” alternative with a limited offering of basic goods where significant limitations exist.
  • Committed to ensuring members have essential items during this difficult time.

Headwinds

  • Impact of the pandemic and related restrictions on operations expected to adversely affect traffic and sales.
  • Proactively taking steps to access and preserve cash available on-hand, including drawing funds on short-term facilities and delaying strategic capital expenditures.
  • Postponing the opening of the warehouse club in Liberia, Costa Rica.
  • Suspending or not initiating the construction and opening of future warehouse clubs in Bogota and Bucaramanga, Colombia, and in Jamaica.
  • Considering and planning for additional cost savings measures in the U.S. and in the markets where they operate.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.9%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+15.4%

Q2 2020

Best reaction

-15.5%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.0%+0.0%+1.0%
Q1 2026+4.5%+7.2%+22.9%
Q4 2025-4.8%-3.0%+0.2%
Q3 2025+0.7%+0.8%+1.3%
Q2 2025+7.0%+6.8%+21.8%
Q1 2025-3.2%-8.0%-0.6%
Q4 2024-8.0%-5.0%-0.6%
Q3 2024+2.6%+7.8%+5.7%
Q2 2024-3.6%-4.9%+2.2%
Q1 2024+4.5%+5.2%+6.9%
Q4 2023-13.4%-7.4%-6.3%
Q3 2023+2.3%+0.8%+2.3%
Q2 2023+12.6%+8.8%+2.1%
Q1 2023+8.4%+11.6%+17.6%
Q4 2022+6.6%+8.6%+10.7%
Q3 2022-9.9%-9.0%-11.8%
Q2 2022+10.9%+4.0%-1.4%
Q1 2022+2.1%+2.6%-6.0%
Q4 2021-5.3%-9.2%-0.6%
Q3 2021+4.8%+3.6%-2.1%
Q2 2021-6.4%-6.5%-7.2%
Q1 2021+1.9%+1.5%+2.0%
Q4 2020-4.6%-4.9%+13.1%
Q3 2020+6.4%+8.3%+12.1%
Q2 2020+15.4%+11.2%-3.0%
Q1 2020-6.9%-5.8%-10.0%
Q4 2019+3.9%+6.2%+3.8%
Q3 2019+5.6%+14.3%+10.4%
Q2 2019+6.3%+2.8%-4.1%
Q1 2019+3.3%+3.9%-4.6%
Q4 2018-14.6%-15.7%-18.9%
Q3 2018-8.7%-14.7%-9.8%
Q2 2018+5.2%+5.1%-1.6%
Q1 2018-6.0%-4.7%-2.9%
Q4 2017-3.4%-7.0%-9.5%
Q3 2017-7.6%-7.7%-4.5%
Q2 2017-5.3%-5.3%-4.2%
Q1 2017+5.0%+1.3%+6.3%
Q4 2016+3.4%+2.0%+4.9%
Q3 2016-11.6%-11.3%-16.7%
Q2 2016-2.2%
Q1 2016-5.7%
Q4 2015+2.1%
Q3 2015+3.7%
Q2 2015-3.5%
Q1 2015-8.4%
Q4 2014+0.0%
Q3 2014-1.2%
Q2 2014-10.7%
Q1 2014-10.3%
Q4 2013+9.7%
Q3 2013-3.0%
Q2 2013+5.5%
Q1 2013+2.1%
Q4 2012+6.3%
Q3 2012+5.5%
Q2 2012+3.2%
Q1 2011-2.6%
Q1 2012-15.5%
Q4 2011-11.6%
Q2 2011-11.6%
Q4 2009-4.2%
Q3 2011-4.2%
Q3 2010-4.2%
Q4 2010-4.2%
Q2 2010+1.2%

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