On Aug. 15, PetSmart (NASDAQ:PETM) released second-quarter earnings for the period ended July 30.
- Revenues came in slightly ahead of expectations. EPS fell short of estimates on expenses to evaluate a merger the company did not pursue and updates to one of its distribution centers, which also lowered gross margins.
- Same-store sales increased by 4.9% during the quarter, and sales of services continued to grow at a rapid clip, with a 28% increase.
- A $250 million share repurchase plan was announced. If executed at today's prices, the plan would reduce the share count by more than 7%.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$1,010,000 |
$1,020,609 |
$899,097 |
13.5% |
|
Net Profit |
-- |
$34,630 |
$35,745 |
(3.1%) |
|
EPS |
$0.28 |
$0.25 |
$0.24 |
4.2% |
|
Diluted Shares |
141,237 |
147,099 |
(4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
29.87% |
31.33% |
(1.46) |
|
Operating Margin |
6.07% |
6.8% |
(0.73) |
|
Net Margin |
3.39% |
3.98% |
(0.59) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$390,466 |
$399,926 |
(2.4%) |
|
Accounts Rec. |
$24,172 |
$24,101 |
0.3% |
|
Inventory |
$415,645 |
$367,727 |
13% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$177,096 |
$174,845 |
1.3% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
Not provided by company.
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Related companies:
- Petco (NASDAQ:PETC)
- Wal-Mart (NYSE:WMT)
- Target (NYSE:TGT)
- PetMed Express (NASDAQ:PETS)
- Tractor Supply (NASDAQ:TSCO)
- MWI Veterinary Supply (NASDAQ:MWIV)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
PetSmart is a Motley Fool Stock Advisor selection. Take the newsletter devoted to the very best of David and Tom Gardner's picks for a 30-day free trial.
Wal-Mart is a Motley Fool Inside Value selection.
At the time of publication,Nathan Parmelee held shares of PetSmart but had no positions in any of the other companies mentioned. Fool rules are here.
