What happened

Shares of PetMed Express Inc. (NASDAQ:PETS) fell as much as 16.6% in trading Monday after the company reported fiscal first-quarter results. As of 3:05 p.m. EDT, shares had recovered slightly, but were still down 13.2% on the day.

So what

Revenue was up 10% in the quarter to $87.4 million and reorders were up 11% to $71.5 million, while net income jumped 35.5% to $12.6 million, or $0.62 per share. The problem is, analysts were expecting earnings of $0.63 per share, so results were slightly below what traders had expected.

Veterinarian checking a dog

Image source: Getty Images.

Management also said that average order size increased $3 to $90, and the tax rate dropped from 35% to 21% because of the tax bill passed in late 2017. Both helped drive the bottom-line growth.

Now what

Traders may be disappointed with the results today, but if you look at PetMed's double-digit growth and its surging bottom line, I think there's a lot to like about the stock. Pet supplies in general are a quickly growing business, and that doesn't seem like it's stopping anytime soon. With shares trading at 15.8 times analysts' fiscal 2019 estimates, there's a lot to like about this stock, and I think it will continue to ride industry growth.

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