PriceSmart (NASDAQ:PSMT) stock is soaring today on news of changes to the S&P Dow Jones Indices.
These changes include PriceSmart stock joining the S&P SmallCap 600. This will have the company replacing Finisar (NASDAQ:FNSR) in the group. The change is set to take place when the markets open on Thursday. It will place PSMT stock in the GICS Hypermarkets & Super Centers Sub-Industry index.
So why exactly is PriceSmart joining the S&P SmallCap 600 in place of Finisar? It all has to do with a deal between Finisar and II-VI (NASDAQ:IIVI). This deal will have the latter acquiring the former. The deal is already close to completion, which is why PriceSmart will be taking Finisar’s place on the SmallCap 600.
PriceSmart last reported earnings on July 10, 2019. The company’s results were far from expectations. It saw profits for its fiscal third quarter of the year drop 25% from the same time last year. It also saw its revenue for the quarter drop from the same period of the year prior.
PriceSmart will next be reporting earnings on October 29. The company plans to release its earnings report for its fiscal fourth quarter of 2019 after the markets close that day. Wall Street is expecting it to report earnings per share of 49 cents on revenue of $812.34 during the quarter.
PriceSmart is a club retailer that requires customers to have a membership to shop in its stores. It is based out of San Diego, Calif. and founded back in 1993.
PriceSmart stock was up 18% as of Monday afternoon and is up 2% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.