PriceSmart's Q3 profit doubles; shares surge

(Reuters) - Warehouse club operator PriceSmart Inc's (PSMT.O: Quote, Profile, Research) third-quarter profit doubled as sales at its outlets surged, sending its shares up as much as 24 percent.

San Diego-based PriceSmart, which owns and operates about 25 warehouse clubs in Central America and the Caribbean, posted net income of $10.6 million, or 36 cents a share, up from $5.2 million, or 18 cents a share, a year earlier.

The company's latest quarter included a net income gain of $2 million related to PriceSmart's settlement of litigation with PSC Parties. PSC S.A., Tecnicard Inc and Banco de la Produccion, and their affiliates are collectively referred as PSC Parties.

Total revenue at the company, which sells low-cost food, pharmacy, and basic consumer items to PriceSmart members, rose 26.5 percent to $283.7 million in the quarter.

Net warehouse club sales climbed 26.6 percent to $277.9 million from the year-ago period.

For the four weeks ended June 30, comparable warehouse sales for warehouse clubs open at least 12 full months increased 20 percent compared with the same period last year.

PriceSmart's shares rose to a high of $22.83, before paring some gains to trade up about 21 percent at $22.30 in Tuesday midday trade. The stock was one of the top percentage gainers on Nasdaq.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Bernard Orr)