PriceSmart (PSMT) shares surged more than 10% on Thursday following the release of its impressive fiscal third-quarter results and the announcement of potential expansion plans into Chile. The operator of membership warehouse clubs in Latin America and the Caribbean delivered earnings and revenue that surpassed analyst expectations, fueling investor optimism.

For the quarter ended May 31, PriceSmart reported earnings per share of $1.14, beating the analyst consensus estimate of $1.13 and marking 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 exceeding the expected $1.31 billion. The company's strong performance was driven by a 7% increase in comparable merchandise sales, demonstrating robust growth in its existing markets.

Adding to the positive sentiment, PriceSmart revealed it is evaluating Chile as a potential new market for multiple warehouse clubs. This expansion strategy signals the company's ambition to grow its footprint beyond its current 55 warehouse clubs. The combination of better-than-expected financial results and the prospect of entering a new market likely contributed to the significant stock price surge. As PriceSmart continues to pursue growth opportunities in both existing and new markets, investors appear optimistic about the company's future prospects in the Latin American and Caribbean regions.