Will PriceSmart (PSMT) Disappoint This Earnings Season? - Analyst Blog
08 4월 2014 - 10:00PM
Zacks
PriceSmart, Inc. (PSMT) is set to report
second-quarter fiscal 2014 results on Apr 9. Last quarter, it
delivered a negative earnings surprise of 2.74%. Let’s see how
things are shaping up for this announcement.
Factors to Consider this Quarter
PriceSmart’s comps have been slowing down since Oct 2013 due to
slowing consumer traffic. Last quarter, comps grew 7.9%, much
weaker than 9.3% and 9.2% in the fourth and third quarters of
fiscal 2013, respectively. Moreover, the company missed the Zacks
Consensus Estimate for both revenues and earnings in the first
quarter. A slowdown in comps, muted margins and a higher tax rate
hurt the bottom line in the quarter.
Comps increased 6.7%, 8.4% and 5.3% in the months of Dec 2013,
Jan 2014 and Feb 2014, respectively, which comprise the second
quarter — suggesting lack of any significant sales improvement in
the second quarter. Severe winter hurt traffic further in these
three months. We believe the persistent slowdown in comps is likely
to continue into the second quarter.
Earnings Whisper?
Our proven model does not conclusively show that PriceSmart is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3
for this to happen. That is not the case here, as you will see
below.
Zacks ESP: The Earnings ESP is
-2.30%.
Zacks Rank: PriceSmart carries a Zacks Rank #4
(Sell). We caution against stocks with Zacks Rank #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
momentum.
Other Stocks to Consider
Other stocks in the retail sector that have both a positive
Earnings ESP and a favorable Zacks Rank are:
The TJX Companies, Inc. (TJX),with Earnings ESP
of +2.99% and a Zacks Rank #3 (Hold).
Foot Locker, Inc. (FL), with Earnings ESP of
+0.96% and a Zacks Rank #2 (Buy).
The Buckle, Inc. (BKE), with Earnings ESP of
+1.27% and a Zacks Rank #3.
BUCKLE INC (BKE): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis Report
PRICESMART INC (PSMT): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
To read this article on Zacks.com click here.
TJX Companies (NYSE:TJX)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
TJX Companies (NYSE:TJX)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024