SAN DIEGO - PriceSmart Inc. (NASDAQ: NASDAQ:PSMT), a leading operator of membership warehouse clubs in Latin America and the Caribbean, reported a robust fiscal second quarter, surpassing analyst estimates for both earnings per share (EPS) and revenue. The company announced on April 9, 2024, that its EPS for the quarter was $1.31, which was $0.07 higher than the analyst consensus of $1.24. Revenue for the quarter reached $1.29 billion, exceeding the consensus estimate of $1.28 billion and marking a 13.1% increase from the $1.14 billion reported in the same quarter of the previous year.
PriceSmart's positive financial performance, highlighted by a 13.0% increase in net merchandise sales and an 8.8% rise in comparable net merchandise sales, has resonated well with investors, sending the stock up by a notable 4.95%. This upward movement in the stock price reflects investor confidence following the earnings and revenue beat.
The company's success this quarter was further underscored by a significant 25.3% increase in net income to $39.3 million, or $1.31 per diluted share, compared to $31.3 million, or $1.02 per diluted share, in the fiscal second quarter of the previous year. Adjusted net income remained steady at $39.3 million, with an adjusted EPS of $1.31, compared to an adjusted net income of $38.5 million and an adjusted EPS of $1.25 in the prior-year period.
In a statement, PriceSmart's management attributed the strong quarterly results to strategic initiatives and a focus on delivering value to its members. The company's growth was also supported by the positive impact of foreign currency exchange rate fluctuations, which contributed $44.2 million, or 4.0%, to net merchandise sales compared to the same period last year.
Looking ahead, PriceSmart continues to expand its footprint, with plans to open its ninth warehouse club in Costa Rica, expected to commence operations in early 2025. This expansion is part of the company's broader strategy to strengthen its presence in key markets.
PriceSmart's financial health allowed for the declaration of a special dividend of $1.00 per share, payable on April 30, 2024, to stockholders of record as of April 19, 2024. This move underscores the company's commitment to returning value to its shareholders and its confidence in sustained financial performance.
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