Petmed Express Second Quarter Earnings Sneak Peek

Petmed Express Inc (NASDAQ:PETS) will unveil its latest earnings on Monday, October 22, 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 17 cents per share, a decline of 10.5% 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 18 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 17 cents during the last month. For the year, analysts are projecting net income of 72 cents per share, a decline of 10% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at profit of 20 cents per share versus a mean estimate of net income of 23 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 2 cents.

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A Look Back: In the first quarter, profit fell 18.3% to $4 million (20 cents a share) from $4.8 million (22 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.3% to $69 million from $73.6 million.

Stock Price Performance: Between July 23, 2012 and October 16, 2012, the stock price rose 78 cents (8.1%), from $9.64 to $10.42. 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.84 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 9.33 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 23.8% to $11.6 million while assets rose 4.1% to $91.2 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 9.8% in the fourth quarter of the last fiscal year and 12% in the third quarter of the last fiscal year before falling in the first quarter.

Heading into this earnings announcement, net income has dropped 14.2% on average for the last four quarters.

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

Wall St. Revenue Expectations: On average, analysts predict $57.2 million in revenue this quarter, a decline of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $230.4 million for the year, a decline of 3.3% from last year’s revenue of $238.3 million.

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

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