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PetSmart Inc (NASDAQ:PETM) reported net income above Wall Street’s expectations for the third quarter. PetSmart is a specialty provider of products, services, and solutions for the lifetime needs of pets. The company offers a line of products for all the life stages of pets and offers various pet services.
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PetSmart Inc Earnings Cheat Sheet
Results: Net income for PetSmart Inc rose to $82.3 million (75 cents per share) vs. $56.2 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 46.6% from the year-earlier quarter.
Revenue: Rose 8.8% to $1.63 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PetSmart Inc beat the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $1.6 billion.
Quoting Management: “Our performance in the third quarter was due to strength across all three merchandising categories, as well as across services,” said Bob Moran, Chairman and Chief Executive Officer. “We are executing well, and continue to define the pet specialty customer experience. As a reminder, 2012 contains a 53rd week. For all of 2012, we anticipate comparable store sales growth of 6% to 7%, and total sales growth in the 10% to 11% range. We are raising our earnings per share guidance from a previous range of $3.30 to $3.40, to our current expectations of $3.47 to $3.51. The impact of the extra week is estimated to be $120 million in sales and $0.16 in EPS,” said Chip Molloy, Executive Vice President and Chief Financial Officer. “For the fourth quarter of 2012, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between $1.16 and $1.20, including the impact of the extra week.”
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 28.3% and in the first quarter, the figure rose 33.5%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 12 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 8.9% to $1.62 billion in the second quarter. The figure rose 9.4% in the first quarter from the year earlier and climbed 7.7% in the fourth quarter of the last fiscal year from the year-ago quarter.
Looking Forward: The average estimate for the fourth quarter remains unchanged at $1.19 a share. For the fiscal year, the average estimate has moved up from $3.35 a share to $3.39 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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