Earnings journal

Discussion in 'Journals' started by TheBigShort, Jan 13, 2019.

  1. TheBigShort

    TheBigShort

    Yea I got the idea from you!

    No hard Earnings Numbers but a ton of detail about their comps/sales and other news effecting their business this quarter. Below are 2 snippets from articles. One released on March 7th for February. And One released last week for March.

    PriceSmart Announces February Sales & Comps – Mar 7, 2019 (Reported March 7, 2019)
    PriceSmart’s net merchandise sales almost remained almost flat at $228.8 million compared with the year-ago period number. Net merchandise sales were adversely impacted by $8.8 million or 3.8% due to currency rate fluctuations. Meanwhile, the company’s comps in February for the five-week period (ended Mar 3, 2019) — for the 40 warehouse clubs fell 1.9%

    PriceSmart's March Comps Drop, Currency Fluctuations Hurt (Reported April 4, 2019)
    PriceSmart, Inc. PSMT comparable warehouse sales (comps) in March 2019 (the four-week period ended Mar 31, 2019) for the 40 warehouse clubs fell 1%, following a decline of 1.9% and 1.4% in February and January, respectively. Although comps grew 0.4% in December 2018, it had decreased in November and October by 2.8% and 1.4%, respectively. Foreign currency exchange rate fluctuations adversely impacted comps by 3.3%.

    For March 2019, PriceSmart’s net merchandise sales inched up 0.1% to $261.5 million from $261.3 million registered in the year-ago period. Net merchandise sales were adversely impacted by $8.7 million or 3.3% due to currency rate fluctuations.

    In the preceding month, the company’s net merchandise sales remained almost flat, while for January the metric increased by 0.3%. For December 2018, it posted net merchandise sales growth of 0.9%. However, the same for November and October 2018 decreased 1% and 0.8%, respectively.

    Moreover, comps for the thirty-week period ended Mar 31, 2019 declined 1.4% compared with the comparable thirty-week period in 2018. Foreign currency exchange rate fluctuations adversely impacted comps for this period by 3.1%.

    Net merchandise sales improved 0.3% to $1,829.1 million for the seven months (ended Mar 31, 2019) from $1,823.3 million in the same period last year. Changes in the currency exchange rate hurt net merchandise sales by $57.9 million or 3.2%.

    Bottom Line

    PriceSmart’s strategy to sell limited products at lower prices helps it to generate higher sales and ensures member loyalty. Also, this operator of membership warehouse clubs’ healthy membership renewal rate reflects its strength. At the end of March 2019, the company had 41 warehouse clubs under operation.

    However, the company has been battling cost-related hurdles, which lingered in the first quarter of fiscal 2019. During the quarter, warehouse club and other operations expenses increased by 6.8% to $74.2 million, while general and administrative expenses jumped 45.2% to $27.3 million.

    This Zacks Rank #5 (Strong Sell) company is also grappling with adverse currency fluctuation as clear from the recent comps figure. Furthermore, net merchandise sales and comparable sales decreased 2.6% and 2.5%, respectively, due to adverse currency fluctuations in first-quarter fiscal 2019. These headwinds along with stiff competition raise concerns for the company.

    [​IMG]

    Consequently, this San Diego, CA-based company has lost roughly 21.3% in the past six months, against its industry’s rise of 6.2%.
     
    #191     Apr 9, 2019
  2. newwurldmn

    newwurldmn

    I got this idea from you! I’m in it but my fill is lot worse. 4.55ish.

     
    #192     Apr 9, 2019
  3. TheBigShort

    TheBigShort

    LOL I mean I got the methodology from you! :p Good luck!
     
    #193     Apr 9, 2019
  4. oldmonk

    oldmonk

    Thanks for the heads up. This one already seemed overpriced relative to historic moves, looks even better now. I got filled at 4.7.
     
    #194     Apr 9, 2019
    TheBigShort likes this.
  5. TheBigShort

    TheBigShort

    Nice! I dont know what happened to @newwurldmn fill of 4.55. He must be trading size
     
    #195     Apr 9, 2019
  6. newwurldmn

    newwurldmn


    I’m impatient. I’m more concerned with getting my fill than getting a few pennies better.
     
    #196     Apr 9, 2019
  7. TheBigShort

    TheBigShort

  8. sle

    sle

    No horse in this race, but two interesting ideas I've heard today was
    - buy UAL Apr 18th, implying 4% vs 7.5% historical (and DAL earnings are a day prior, so an additional little pickup)
    - buy OIH Apr 26th, it captures like 70% of earnings in the basket
     
    #198     Apr 9, 2019
  9. TheBigShort

    TheBigShort

    Looks like we are in REALLY good shape here guys!! Stock @ 58 (earnings call should be a non-event)
    Your like those bad signal services that tell you the trade after the close :p. Thanks for the heads up, those look JUICY!!
     
    #199     Apr 9, 2019
  10. sfwind

    sfwind

    Tiptoe into Twitter earnings.
     
    #200     Apr 9, 2019