As a writer, I find it a pain to type company names like PETsMART
Today's pleasing announcement was that the company is changing its name to, you guessed it, PetSmart. My spell checker doesn't like it in this form either, but that naming style is more common. Just ask DreamWorks Animation
PetSmart is using its amusing name-change press release to stress that it is the smart destination for pet products, services, and advice. Second-quarter results released Wednesday night confirm that customers are getting the message at the 757-store chain. Compared with the year-ago quarter, sales were up 11.6% and net income rose 22.8%. More importantly, same-store sales were up a solid 4.2%.
While big-box retailers like Wal-Mart
PetSmart projects that same-store sales will be up 4% in 2005 and that earnings will be $1.215 to $1.225 a share (excluding a one-time legal settlement gain of $0.035 per diluted share). At the high end of guidance, the stock sells for 20.5 times forward earnings. That's a very reasonable price for a company that analysts expect to grow earnings by 18% annually for the next five years.
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