PriceSmart (PSMT) shares surged 10.61% in a 24-hour period, following the release of its fiscal third-quarter results that exceeded analyst expectations and the announcement of potential expansion plans into Chile. The stock's significant movement occurred during Thursday's trading session, with the momentum continuing from after-hours trading the previous day.
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.
Adding to the positive sentiment, PriceSmart 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 combination of better-than-expected financial results and the prospect of entering the Chilean market likely fueled investor enthusiasm, contributing to the significant stock price surge.
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