Petmed Express Third Quarter Earnings Sneak Peek

Petmed Express Inc (NASDAQ:PETS) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. 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 18 cents per share, a decline of 5.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 17 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 18 cents during the last month. Analysts are projecting profit to rise by 3.8% compared to last year’s 77 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of 20 cents per share against a mean estimate of profit of 17 cents per share. In the first quarter, it missed forecasts by 3 cents.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 9.55 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.

A Look Back: In the second quarter, profit rose 2.6% to $4 million (20 cents a share) from $3.9 million (19 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 0.1% to $58.1 million from $58.2 million.

Here’s how Petmed Express traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

PETS

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.

Key Stats:

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.3% in the first quarter and dropped again in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.1% in revenue from the year-earlier quarter to $50 million.

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