PetMed Express Earnings: Here’s Why Investors are Happy Now

PetMed Express Inc. (NASDAQ:PETS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.40%.

PetMed Express Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20% to $0.24 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 7.6% to $74.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PetMed Express Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $69.85 million.

Quoting Management: Menderes Akdag, CEO and President, commented: “We are pleased with the strong new order and reorder sales for the quarter. Our sales increase for the quarter was also highlighted by an increased average order size – $77 for the quarter ended June 30, 2013 compared to $73 for the same quarter in the prior year. For the quarter ended June 30, 2013 our operating expenses decreased by 109 basis points, mainly due to the leverage of our general and administrative expenses. Cash flow from operations increased by 44%, from $13.8 million to $19.8 million for the quarters ended June 30, 2012 and 2013, respectively. For the remainder of Fiscal 2014 we are focusing on improving our advertising efficiency and continuing to expand our product offerings.”

Key Stats (on next page)…

Revenue increased 45.15% from $51.12 million in the previous quarter. EPS increased 4.35% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.2 to a profit $0.21. For the current year, the average estimate has moved up from a profit of $0.85 to a profit of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)