PriceSmart (PSMT) shares surged 12.71% in after-hours trading on Thursday following the release of its fiscal third-quarter results that exceeded analyst expectations and the announcement of potential expansion plans into Chile.

The operator of membership warehouse clubs in Latin America and the Caribbean reported earnings per share of $1.14 for the quarter ended May 31, surpassing the analyst consensus estimate of $1.13. This represents a 5.56% increase from $1.08 per share in the same period last year. Revenue climbed to $1.32 billion, up 7.1% year-over-year, slightly beating the expected $1.31 billion.

PriceSmart's strong performance was driven by a 7% increase in comparable merchandise sales. The company also revealed it is evaluating Chile as a potential new market for multiple warehouse clubs, signaling ambitious growth plans. With 55 warehouse clubs currently in operation, one more than a year ago, PriceSmart's expansion strategy appears to be gaining momentum. The news of potential entry into the Chilean market, coupled with the better-than-expected financial results, likely contributed to the significant after-hours stock price surge.