PetSmart, Inc Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

PetSmart, Inc (NASDAQ:PETM) reported net income above Wall Street’s expectations for the second quarter. PetSmart, Inc. (PetSmart) is a specialty provider of products, services and solutions for the lifetime needs of pets. The Company offers a line of products for all the life stages of pets, and offers various pet services.

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PetSmart, Inc Earnings Cheat Sheet for the Second Quarter

Results: Net income for PetSmart, Inc rose to $61.2 million (54 cents per share) vs. $48.4 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 26.4% from the year earlier quarter.

Revenue: Rose 7% to $1.49 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PETM beat the mean analyst estimate of 50 cents per share. Analysts were expecting revenue of $1.48 billion.

Quoting Management: “The strength of our brand was evident with another quarter of solid performance,” said Bob Moran, Chief Executive Officer and President, “and validates the work that we are doing on our journey to becoming a best-in-class specialty retailer.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.9 percentage point to 29.4% from the year earlier quarter. Over that span, margins have grown on average 0.7 percentage point per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 27.5% and in the fourth quarter of the last fiscal year, the figure rose 20.3%.

Revenue has risen the past four quarters. Revenue increased 6.8% to $1.49 billion in the first quarter. The figure rose 8.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.

Competitors to Watch: PetMed Express (NASDAQ:PETS), Rite Aid (NYSE:RAD), Walgreen (NYSE:WAG), CVS (NYSE:CVS), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA).

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(Source: Xignite Financials)