PetSmart Q2 Profit Climbs on Higher Sales; Boosts Fiscal 2013 Outlook (PETM)
Early on Wednesday, pet supplies retailer PetSmart, Inc. (PETM) reported a 19% year-over-year increase in second quarter profits, helped by 6% quarterly sales growth. Earnings were able top analysts’ expectations, while revenues came in-line with estimates.
The Phoenix, Arizona-based company posted a second quarter net income of $93.37 million, or 89 cents per share, up from $78.52 million, or 71 cents per share, in the same period a year ago. According to analysts polled by Thomson Reuters, the company was expected to earn 86 cents per share in the second quarter.
PetSmart’s quarterly sales came in at $1.71 billion, up from $1.62 billion in the same period in 2012. On average, analysts were expecting the company to see $1.71 billion in revenues for the quarter.
On a comparable store basis, sales advanced 3.4%. Transaction sales grew bt 1% and services sales grew by 7.3% to $205 million.
Looking ahead to the third quarter, PetSmart expects earnings to come in between 83 cents and 87 cents per share. Analysts are expecting the company to see 81 cents per share in earnings for the quarter.
For fiscal 2013, PetSmart now sees earnings coming in between $3.88 and $3.98 per share, up from the previous projection of earnings between $3.82 and $3.94 per share. According to analysts, PetSmart is expected to earn $3.95 per share in fiscal 2013.
PetSmart shares were down $1.00, or 1.33%, during pre-market trading on Wednesday. The stock is up 9.75% year-to-date.
The Bottom Line
Shares of PetSmart (PETM) offer a dividend yield of 0.88% based on last night’s closing price of $75.00 and the company’s annualized dividend payout of 66 cents per share.
PetSmart, Inc. (PETM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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