Petmed Express First Quarter Earnings Sneak Peek

Petmed Express Inc (NASDAQ:PETS) will unveil its latest earnings on Monday, July 23, 2012. 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.

Petmed Express Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 23 cents per share, a rise of 4.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 24 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 2.5% compared to last year’s 78 cents.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 20 cents per share versus a mean estimate of profit of 18 cents per share.

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Stock Price Performance: Between April 20, 2012 and July 17, 2012, the stock price fell $1.56 (-11.9%), from $13.11 to $11.55. The stock price saw one of its best stretches over the last year between January 10, 2012 and January 24, 2012, when shares rose for 10 straight days, increasing 20.1% (+$2.11) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 8% (-78 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5% in revenue from the year-earlier quarter to $77.3 million.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 3.7% to $4 million (19 cents a share) from $4.1 million (18 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 9.8% to $55.9 million from $50.9 million.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 12% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Heading into this earnings announcement, net income has dropped 17.9% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 9.33 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 10.11 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.1% to $9.4 million while assets rose 5.3% to $87.6 million.

Analyst Ratings: With three analysts rating the stock a sell, one rating it as a buy and three rating it as a hold, there are indications of a bearish outlook.

Competitors to Watch: Rite Aid, Walgreen, China Nepstar Chain Drugstore Ltd.(ADR), Graymark Healthcare Inc, GNC Holdings Inc, and CVS Caremark.

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

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