PetSmart Earnings: Here’s Why Investors are Selling Shares Now

PetSmart, Inc. (NASDAQ:PETM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.3%.

PetSmart, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 36.26% to $1.24 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Rose 14.72% to $1.88 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PetSmart, Inc. reported adjusted EPS income of $1.24 per share. By that measure, the company beat the mean analyst estimate of $1.21. It missed the average revenue estimate of $1.89 billion.

Quoting Management: “We are pleased to report another quarter of solid earnings growth,” said Bob Moran, Chairman and Chief Executive Officer. “Our unique portfolio of solutions centered on our merchandise and service offerings is further strengthened by our culture of innovation and differentiation and truly sets us apart from the competition.”

Key Stats (on next page)…