The 10-second takeaway
For the quarter ended May 5 (Q1), PetSmart met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Margins grew across the board.
PetSmart recorded revenue of $1.71 billion. The 22 analysts polled by S&P Capital IQ anticipated revenue of $1.72 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS of $0.98 for Q1 were 15% higher than the prior-year quarter's $0.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, 50 basis points better than the prior-year quarter. Operating margin was 9.8%, 30 basis points better than the prior-year quarter. Net margin was 6.0%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.72 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $7.02 billion. The average EPS estimate is $4.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 728 members out of 781 rating the stock outperform, and 53 members rating it underperform. Among 302 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 289 give PetSmart a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PetSmart is hold, with an average price target of $72.26.
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