What happened
Shares of Petmed Express Inc (PETS -2.61%) 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.
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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.
