PriceSmart Records Mixed Q3 Performance, Authorizes $75M Share Buyback
Portfolio Pulse from Lekha Gupta
PriceSmart Inc reported a Q3 FY23 revenue increase of 6.4% Y/Y to $1.097 billion, slightly missing the consensus of $1.100 billion. Net merchandise sales rose 7.1% Y/Y to $1.07 billion. Adjusted EBITDA stood at $63.2 million vs. $51.3 million a year ago. Adjusted EPS of $1.02 exceeded the consensus of $0.85. The company authorized a share buyback of up to $75 million in the quarter. PSMT shares closed lower by 5.06% at $73.00 after-hours on Monday.
July 11, 2023 | 9:18 am
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PriceSmart's Q3 FY23 revenue increased but slightly missed consensus. The company's net merchandise sales rose and adjusted EPS exceeded consensus. A $75M share buyback was authorized. PSMT shares closed lower.
PriceSmart's Q3 revenue increased but missed the consensus, which could negatively impact investor sentiment. The rise in net merchandise sales and adjusted EPS exceeding consensus are positive signs. However, the authorization of a $75M share buyback indicates the company's confidence in its stock, which could have a positive impact. Despite these, PSMT shares closed lower, indicating a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100