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PetMed Express Inc. (NASDAQ:PETS) reported its results for the first quarter. PetMed Express is a nationwide pet pharmacy. The company markets prescription and non-prescription pet medications and other health products for dogs, cats, and horses direct to the consumer.
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PetMed Express Inc. Earnings Cheat Sheet
Results: Net income for PetMed Express Inc. fell to $4 million (20 cents per share) vs. $4.8 million (22 cents per share) a year earlier. This is a decline of 18.3% from the year-earlier quarter.
Revenue: Fell 6.3% to $69 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: PetMed Express Inc. fell short of the mean analyst estimate of 23 cents per share. It fell short of the average revenue estimate of $77.3 million.
Quoting Management: Menderes Akdag, CEO and President, commented: “Although our sales were down due to a decline in average order size, we did see an increase in total orders. During the quarter ended June 30, 2012 our average order size was $73, compared to $80 for the quarter ended June 30, 2011. This reduction can be attributed to customers purchasing smaller quantities, for example a three-month supply instead of six months, additional discounts given, and a change in product mix to lower priced items. In addition, the decrease in sales for the quarter can be attributed to the unavailability of Novartis brands during the quarter, due to the manufacturer’s suspended production. The sales in the June quarter might also have been negatively affected by the peak season starting earlier this year due to the warmer weather, which shifted sales to the March quarter. Cash flow from operations increased by 62%, from $8.5 million to $13.8 million for the quarters ended June 30, 2011 and 2012, respectively. To address the decrease in sales for the quarter, we are focusing on advertising efficiency and shifting sales to higher margin items, while continuing to expand our product offerings.”
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by 2 cents, and in the third quarter of the last fiscal year, it was ahead by 3 cents.
A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 9.8% in the fourth quarter of the last fiscal year and 12% in the third quarter of the last fiscal year.
Net income has dropped 18% year-over-year on average across the last five quarters. Performance was hurt by a 33.1% decline in the first quarter of the last fiscal year from the year-earlier quarter.
Looking Forward: The average estimate for the second quarter remains unchanged at 18 cents a share. For the fiscal year, the average estimate has moved up from 77 cents a share to 78 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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