PetSmart Earnings: Here’s Why Investors Like These Results

PetSmart, Inc. (NASDAQ:PETM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.9%.

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PetSmart, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.29% to $0.98 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 4.95% to $1.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PetSmart, Inc. reported adjusted EPS income of $0.98 per share. By that measure, the company beat the mean analyst estimate of $0.96. It missed the average revenue estimate of $1.72 billion.

Quoting Management: “We are pleased to report another quarter of solid earnings growth,” said Bob Moran, Chairman and Chief Executive Officer. “Our focus on providing solutions for the lifetime needs of pets has kept our pet parent customers highly engaged with our brand, resulting in positive comparable store sales growth and transaction growth.”

Key Stats (on next page)…

Revenue decreased 8.97% from $1.88 billion in the previous quarter. EPS decreased 20.97% from $1.24 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.85 and has not changed. For the current year, the average estimate has moved down from a profit of $3.93 to a profit of $3.91 over the last ninety days.

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

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