San Diego-based retail warehouse stores operator,
) is set to report second-quarter fiscal 2013 results on Apr 9.
In the last quarter it posted a 4.8% positive surprise. Let's see
how things are shaping up for this announcement.
Growth Factors this Past Quarter
Last quarter was a mixed one for PriceSmart where it beat the
Zacks Consensus Estimate for earnings but missed for revenues.
Sales grew 11.6% and earnings per share grew 40.4% year over year
in the quarter.
PriceSmart had been consistently reporting double-digit growth
in monthly sales until January this year. However,Februarysales
were up only 7.8%, much below its trend. Management blamed the
sales shortfall on one less selling day in February this year as
the previous year was a leap year. The sales lag in February
created a downward pressure on estimates.
Our proven model does not conclusively show that PriceSmart is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
This is because the Most Accurate Estimate stands at $0.79 while
the Zacks Consensus Estimate is higher at $0.80. This is a
difference of -1.25%.
Zacks Rank #4 (Sell):
We caution against
stocks with Zacks Ranks #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
Here are some other consumer staples companies you may want to
consider, as our model shows they have the right combination of
elements to post an earnings beat this quarter:
Flower Foods, Inc
), Earnings ESP of +7.50%and Zacks Rank #1 (Strong Buy)
ConAgra Foods, Inc
), Earnings ESP of +1.72% and Zacks Rank #2 (Buy)
Dollar Tree, Inc.
), Earnings ESP of +1.75% and Zacks Rank #3 (Hold)
CONAGRA FOODS (CAG): Free Stock Analysis
DOLLAR TREE INC (DLTR): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
PRICESMART INC (PSMT): Free Stock Analysis
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