PetMed Express Earnings: Profit Streak Still Alive

PetMed Express Inc. (NASDAQ:PETS) reported its results for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for PetMed Express Inc. fell to $4 million (20 cents per share) vs. $4.1 million (19 cents per share) a year earlier. This is a decline of 3.7% from the year-earlier quarter.

Revenue: Rose 9.8% to $55.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PetMed Express Inc. beat the mean analyst estimate of 18 cents per share. It beat the average revenue estimate of $52 million.

Quoting Management: Menderes Akdag, President and CEO, commented: “We are pleased with the strong new and reorder growth in the quarter. We acquired approximately 162,000 new customers during the fourth quarter compared to 130,000 during the same period a year ago, an increase of 25%, and for the year ended March 31, 2012, the Company acquired approximately 722,000 customers compared to 645,000 for the year ended March 31, 2011, an increase of 12%. We are also pleased to report that our online sales increased 16% for the quarter ended March 31, 2012, and 8% for the year ended March 31, 2012. Moving forward we will continue with an aggressive pricing strategy combined with increased advertising, while expanding our product offerings. During the fiscal year, we increased our quarterly dividends to $0.15 per share, an increase of 20%. In accordance with our share repurchase program, we repurchased approximately 2.1 million shares paying approximately $23.7 million in fiscal 2012.”

Key Stats:

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 3 cents in the third quarter and by 5 cents in the second quarter.

The comapny’s revenue has not increased in each of the last two quarters. In the third quarter, revenue increased 12% to $50.5 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 25 cents a share to 24 cents over the last thirty days. In the past month, the average estimate for the fiscal year has fallen from 79 cents per share to 78 cents abs.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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