What happened

Shares of Petmed Express Inc (NASDAQ:PETS) jumped as much as 26.4% on Monday after reporting fiscal fourth-quarter earnings. At 2:55 p.m. EDT shares were still up 25.3% for the day.

So what

Revenue was up 13.8% to $63 million in the quarter and net income was up 38.5% to $7.5 million, or $0.37 per share. Analysts were only expecting $56.3 million in revenue and $0.26 per share in earnings.

Dogs playing in a park.

Image source: Getty Images.

There was a 17% increase in new orders in the fourth quarter and a 13% increase in reorders, according to management.

Now what

Not only is Petmed growing on the top line, it's improving margins as well. Gross margin was up from 31.9% a year ago to 35.1%. An increase of $3 per order to $86 helped drive the top line and margins as well. Given the top and bottom line results and the increased dividend to $0.20 per share each quarter, a nice yield for investors, I think shares still have room to run higher.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.