PetSmart Inc. Third Quarter Earnings Sneak Peek

PetSmart, Inc. (NASDAQ:PETM) will unveil its latest earnings on Wednesday, November 16, 2011. 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.

PetSmart, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a rise of 26.3% 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 45 cents. Between one and three months ago, the average estimate moved down. It has risen from 44 cents during the last month. For the year, analysts are projecting profit of $2.53 per share, a rise of 25.9% from last year.

Past Earnings Performance: Last quarter, the company reported net income of 54 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.2% in revenue from the year-earlier quarter to $1.49 billion.

Analyst Ratings: Analysts seem relatively indifferent about PetSmart with 11 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 26.4% to $61.2 million (54 cents a share) from $48.4 million (41 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7% to $1.49 billion from $1.39 billion.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 6.8% in the first quarter from the year earlier, climbed 8.1% in the fourth quarter of the last fiscal year from the year-ago quarter and 7.2% in the third 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).

Stock Price Performance: During August 17, 2011 to November 10, 2011, the stock price had risen $5.18 (12.5%) from $41.44 to $46.62. The stock price saw one of its best stretches over the last year between October 5, 2011 and October 14, 2011 when shares rose for eight-straight days, rising 10.9% (+$4.47) over that span. It saw one of its worst periods between February 16, 2011 and February 24, 2011 when shares fell for six-straight days, falling 5.5% (-$2.30) over that span. Shares are up $7.28 (+18.5%) year to date.

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

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